Budget highlights

18 June 2014

The Department of Foreign Affairs and Trade (DFAT) will receive an appropriation of $1,404.8 million for the 2014-15 financial year, including $1,271.0 million in operating funding, $53.0 million in capital and $80.8 million equity funding.

DFAT will receive $51.5 million in 2014-15 to maintain Australia’s Embassy in Kabul and continue work towards preventing Afghanistan from again becoming a safe haven for terrorists.

DFAT will receive $35.6 million in 2014-15 to close the current Australian Embassy in Baghdad and relocate to lower-cost shared accommodation with the British Embassy. This funding will allow the department to continue to promote Australia’s national interests in Iraq while delivering significant savings on security costs.

DFAT will receive $6.4 million over two years to provide support for the Government’s counter people smuggling operations and continue to engage our partners in the region on a coordinated response to people smuggling.

This Budget also contains a range of savings measures. The efficiency dividend will continue to apply, providing $28.8 million in savings over four years from DFAT.

The Government will terminate the Australia Network contract with the Australian Broadcasting Corporation (ABC).

Funding of $79.4 million will be withdrawn from the Overseas Property Special Account in 2014-15, previously set aside for a planned relocation of the Tehran Embassy, which will not currently go ahead due to lack of suitable site.

DFAT has also reviewed its staffing profile to identify efficiencies as a result of the integration of the former AusAID. The department will reduce staff numbers by around 500, delivering approximately $110 million in savings in 2014-15 and $287 million over the forward estimates.

Media releases

Portfolio Budget Statements

More: 2014-15 Foreign Affairs and Trade Portfolio Budget Statements, including funding for portfolio agencies Austrade, EFIC, ACIAR, ASIS and Tourism Australia

The 2014-15 development assistance budget at a glance

In 2014-15, Australia will provide an estimated $5,031.9 million in Official Development Assistance (ODA).

This programme will work in Australia’s national interest through contributing to sustainable economic growth and poverty reduction. It will be governed by a new development policy, Australian aid: promoting prosperity, reducing poverty, enhancing stability¸ which will guide a re-shaping of the aid programme throughout 2014-15 and in coming years.

The Government’s new performance framework Making Performance Count: enhancing the accountability and effectiveness of Australian aidwill reinforce the new directions laid out in the new development policy. Making Performance Count will drive real links between performance and aid funding decisions, ensuring a stronger focus on results and value-for-money.

The 2014-15 Budget delivers a stable development assistance budget tied to measurable outcomes and focused on the Indo‑Pacific region, positioning Australia as a reliable international donor and effective development partner.

Australia is the second largest donor to the East Asia and Pacific region and is in the top ten donors of the Organisation for Economic Cooperation and Development (OECD) group of major donors.

Australia will continue to uphold its global responsibilities, including by maintaining a strong humanitarian programme. Of the total development assistance budget, $338.6 million will be allocated for humanitarian, emergencies and refugee expenditure in 2014-15, with further funding allocated to assist communities to reduce disaster risk. This includes an increase of the Emergency Fund, from $90 million to $120 million, to enable Australia to respond swiftly and effectively to global emergencies and emerging priorities.

The Australian aid programme will be delivered by non‑government organisations (NGOs), Australian volunteers, businesses and government agencies working together with developing countries and international organisations.

  • The Australia Awards program within DFAT will be increased by $31.7 million to contribute to overall DFAT-administered Australian Awards funding of $310.0 million in 2014-15. This will ensure we can offer over 4,500 scholarship and fellowships awards in 2014-15 and continue to build skills to contribute to economic and human development and foster links between Australia and countries in our region.
  • Funding managed by NGOs through the Australian-NGO Cooperation Programme (ANCP) will be increased to $134.0 million in 2014-15 — an increase of $3.3 million.
  • The Direct Aid Programme will be doubled to $22.0 million and volunteer programme maintained at 2013-14 levels ($56.6 million) — to strengthen our focus on cultural exchange and people-to-people links.
  • Other government departments (e.g. the Australian Federal Police, Department of Immigration and Border Protection, and Attorney-General’s Department) will manage and deliver an estimated $392.0 million (8 per cent) of Australia’s ODA in 2014-15.

Indo-Pacific region

The 2014-15 development assistance budget reinforces the Government’s decision to refocus Australian aid on the Indo-Pacific region. Countries in the Indo-Pacific region will receive an estimated 92 per cent of country and regional programme funding in 2014-15 (compared to 86 per cent previously) to promote prosperity, reduce poverty and enhance stability. Our sharper geographic focus reflects the reality that most of our neighbours are developing countries. Many of them face significant development challenges.

Most countries within the Indo-Pacific have received an increase on 2013-14 funding levels. Consistent with the Government’s focus on our region, programmes outside the region either phased out (e.g. in Latin America and the Caribbean) or scaled back (e.g. sub‑Saharan Africa), where other developed nations have primary responsibility.

Australian Embassy official Eva Yazon on site observing humanitarian relief efforts in Guiuan. Credit: DFAT
Foreign Minister Julie Bishop presents the inaugural Australia Awards Hadi Soesastro Prize. Credit: DFAT
Solomon Islands 2007. Credit: DFAT
First grade students during class at Norsup Primary School. Credit: DFAT

Sectoral priorities

The 2014-15 Budget provides a sharper focus on investing in drivers of economic growth, in line with the new strategic framework for the aid programme released as part of the Government’s new development policy Australian aid: promoting prosperity, reducing poverty, enhancing stability.

Figure 1: 2014-15 sectoral funding estimates

General developments support 9%, Infrastructure and trade 13%, Agriculture 7%, Effective governance 18%, Education 23%, Health 16%, Building resilience 14%
Sector 2014/15 Budget Estimate
Infrastructure, trade facilitation and international competitiveness 13 per cent
Agriculture, fisheries and water 7 per cent
Effective governance: policies, institutions and functioning economies 18 per cent
Education 23 per cent
Health 16 per cent
Building resilience: Humanitarian assistance, disaster risk reduction and social protection 14 per cent
General development support 9 per cent

Global programmes

In 2014-15 Australia will continue to work with effective and efficient multilateral and global organisations to contribute to global aid solutions or deliver aid in countries where we do not have a bilateral presence. These partners include:

  • multilateral development banks such as the World Bank and Asian Development Bank
  • United Nations (UN) development and humanitarian organisations such as UNICEF, UN Women, UN Development Programme and the World Food Programme
  • the International Committee of the Red Cross
  • partnerships with health, education and environmental organisations such as the Global Fund to Fight AIDS, Tuberculosis and Malaria, the Global Partnership for Education, and the Global Environment Facility.

For more detail see: The 2014-15 development assistance budget: a summary [DOCX 403 KB]

Table 1: Allocations to DFAT country, regional and global programmes

This table shows allocations to DFAT country, regional and global programmes.

DFAT country, regional and global programmes 2013-14 Estimated Outcome ($m) 2014-15 Budget Estimate ($m)
Country and Regional Programmes
Papua New Guinea 448.5 502.1
Solomon Islands 90.4 92.7
Vanuatu 40.9 41.9
Samoa 23.1 23.6
Fiji 34.2 35.0
Tonga 17.2 17.6
Nauru 20.7 21.2
Kiribati 19.7 20.2
Tuvalu 6.6 6.8
Cook Islands 1.0 1.0
Niue and Tokelau 2.4 2.5
North Pacific 4.8 5.0
Pacific Regional 172.6 196.9
Pacific Total 882.2 966.6
Indonesia 542.2 542.5
Vietnam 95.0 97.4
Philippines 109.0 111.7
Timor-Leste 70.0 71.6
Cambodia 51.1 52.4
Burma 62.1 70.1
Laos 33.5 34.3
Mongolia 9.6 9.8
East Asia Regional 63.9 85.5
East Asia Total 1,036.4 1,075.4
Afghanistan 130.9 130.9
Pakistan 64.0 65.6
Bangladesh 61.6 70.1
Sri Lanka 32.4 33.2
Nepal 15.2 15.6
Bhutan 3.5 3.5
Maldives 3.0 3.0
South and West Asia Regional 22.4 32.9
South & West Asia Total 332.8 354.9
Iraq 3.7 -
Palestinian Territories 33.4 34.2
Middle East and North Africa 32.2 2.8
Sub-Saharan Africa 133.0 106.0
Africa & the Middle East Total 202.3 143.0
Latin America 7.1 -
Caribbean 8.0 -
Latin America and the Caribbean Total 15.1 -
Cross Regional Programmes 309.1 686.9
DFAT ODA - Country & Regional Programmes 2,777.9 3,226.8
Global Programmes
Humanitarian and Emergency Response 137.4 200.1
International Committee of the Red Cross 22.0 26.6
UN-Humanitarian 104.8 111.9
United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) 9.0 9.3
World Food Programme (WFP) 46.0 50.0
United Nations Central Emergency Response Fund (UNCERF) 11.0 11.3
United Nations High Commissioner for Refugees (UNHCR) 19.0 21.0
United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) 19.8 20.3
Humanitarian, Emergencies and Refugees Total 264.2 338.6
Montreal Protocol Multilateral Fund (MPMF)1 -  nfp
Asian Development Bank (ADF) - -
International Development Association (IDA) 582.8 -
Heavily Indebted Poor Countries Initiative (HIPC) 57.0 -
G8 Multilateral Debt Relief Initiative (MDRI) 109.0 -
Global Environment Facility (GEF)1 -  nfp
Multilateral Replenishments Total2 748.8 -
UN-Development 131.9 131.8
United Nations Development Programme (UNDP) 20.7 21.2
United Nations Children's Fund (UNICEF) 34.1 35.0
United Nations Population Fund (UNFPA) 15.0 15.4
United Nations Programme on HIV and AIDS (UNAIDS) 7.2 7.5
World Health Organization (WHO) 20.0 20.6
UN Women 8.0 8.2
Other UN including ODA eligible assessed contributions 26.9 23.9
Commonwealth Organisations 12.0 12.0
Contribution to Global Health Programmes 3 181.4 74.0
Contribution to Global Education Programmes 70.0 100.0
UN, Commonwealth & Other International Organisations Total 395.3 317.9
Global NGO Programmes 133.9 137.2
Australian Volunteers Programme 55.3 56.6
Community Engagement and International Research 10.3 10.0
NGO, Volunteer and Community Programmes Total 199.4 203.9
Less Multilateral Replenishments (748.8) -
Add Cash payments to Multilaterals 345.8 363.2
DFAT ODA - Global Programmes 1,204.8 1,223.6
DFAT ODA - Departmental 373.6 251.3
Other Government Departments 748.5 392.0
Adjustments (73.2) (61.8)
Total Australian ODA 5,031.7 5,031.9

1 Negotiations are currently under way for this replenishment. Following the finalisation of the negotiations the amounts pledged will be publically available.

2 These figures reflect the value of new commitments to the multilateral development banks and other multilateral funds which will be paid over 3 to 9 years. These commitments usually occur every two to three years.

3 Funding to Global Health Programmes for 2014-15 will include further commitments to be agreed during the year, e.g. the GAVI replenishment which is under consideration.

Table 2: Total Australian ODA by partner country and region

This table shows total Australian ODA from all agencies and programmes attributable to partner countries and regions. This includes DFAT country programme allocations, flows from DFAT regional and global programmes, and Other Government Departments expenditure.

Total Australian ODA by partner country and region  2013-14 Estimated Outcome ($m)  2014-15 Budget Estimate ($m)
Papua New Guinea 519.4 577.1
Solomon Islands 164.4 168.1
Vanuatu 60.1 60.4
Samoa 36.4 37.6
Fiji 59.5 61.9
Tonga 29.3 30.3
Nauru 29.5 27.1
Kiribati 26.3 26.9
Tuvalu 10.1 10.4
Cook Islands 3.7 4.0
Niue and Tokelau 5.5 6.3
North Pacific 12.9 13.5
Pacific Regional 105.4 129.1
Pacific Total 1,062.6 1,152.7
Indonesia 601.6 605.3
Vietnam 138.9 141.3
Philippines 175.2 143.0
Timor-Leste 112.3 96.6
Cambodia 77.5 79.0
Burma 81.4 90.0
Laos 56.4 55.6
Mongolia 16.7 16.3
East Asia Regional 81.4 100.0
East Asia Total 1,341.4 1,327.0
Afghanistan 149.3 134.2
Pakistan 78.3 79.0
Bangladesh 84.4 94.2
Sri Lanka 40.8 42.8
Nepal 35.3 33.9
Bhutan 13.9 14.8
Maldives 6.4 7.0
South and West Asia Regional 27.7 33.1
South & West Asia Total 435.9 438.8
Iraq 4.1 0.3
Palestinian Territories 54.8 56.5
Middle East and North Africa 42.2 8.8
Sub-Saharan Africa 243.8 186.9
Sub-Saharan Africa & the Middle East Total 344.8 252.4
Latin America 19.0 16.1
Caribbean 10.6 5.0
Latin America and the Caribbean Total 29.6 21.1
Core contributions to multilateral organisations and other ODA not attributed to particular countries or regions 1,890.5 1,901.6
Adjustments (73.2) (61.8)
Total Estimated ODA 5,031.7 5,031.9

Chart 1: Estimated regional flows

Region 2014/15 (Budget Estimate) (%) $
Total 100  
Pacific
View
36 1,152.7
East Asia
View
41 1,327.0
South and West Asia
View
14 438.8
Sub-Saharan Africa and the Middle East
View
8 252.4
Latin America and the Caribbean
View
1 21.1

Chart 2: Estimated total ODA by country

Bar chart of data that is detailed in the tables above.