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Aid Budget Demonstrates Government's Commitment to Poverty Reduction

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Media Release

MEDIA RELEASE

Highlights

Commitment to Asia-Pacific region

Bougainvilleconflict resolution and rehabilitation of health and
education services

More money for policy and management reform in the South Pacific

Continued and new support for human rights

Basic educationincluding $10.4 million for vulnerable children in
India

Basic healthincluding $43 million for women's and children's health in
PNG

17 per cent increase in funding for core NGO program

Australia's aid budget will be $1 430 million in 199798. This is a very good
outcome in the prevailing budgetary circumstances. It is a decrease of only 1
per cent on estimated 199697 outlays.

Australia's estimated ODA to gross national product (GNP) ratio in 199798
will be 0.27 per cent, expected to be above the average of other donor
countries.

This is a considerable commitment to the reduction of global poverty in
developing countries, particularly in our own region.

The major focus of the Australian overseas aid program is on the South
Pacific and East Asia. Total aid levels for the South Pacific and country
program assistance to most East Asian recipients are essentially maintained in
this budget.

The 199697 Australian aid budget strengthened the overriding humanitarian
focus of our aid program. The 199798 budget builds on those changes.

Papua New Guinea

In 199798, $319.2 million will be provided to PNG in line with the
PNG-Australia Treaty on Development Cooperation. Programmed aid, with a
particular focus on basic education, rural health and repair of existing
infrastructure, will increase to $191 million. An allocation of $106 million
will be provided as budget support.

Australia's aid program will play an important role in conflict resolution in
Bougainville, restoring essential health and education services and meeting the
immediate humanitarian needs of Bougainvilleans.

South Pacific

Total Australian aid flows to the South Pacific are estimated to be $124.7
million in 199798,essentially the same as 199697. This demonstrates the
Government's commitment to our Pacific neighbours.

In order to help Pacific island governments implement essential economic and
public sector management reforms, assistance for regional policy and management
reforms will increase by $2 million to $11 million in 199798.

Asia

Country program assistance to Indonesia, China, Vietnam, Laos, Cambodia and
the Philippines has been maintained at 199697 budget levels.

Aid to South Asia, one of the poorest regions in the world will be $83
million, and Bangladesh, one of the poorest countries in the world, will
continue to be the largest recipient of Australian aid to South Asia.

Non Government Organisations

Assistance to NGOs through the AusAID-NGO Cooperation Program (ANCP) will
increase by $3 million or nearly 20 per cent. This increase to the central NGO
program in a reduced aid budget is a firm indication of the Government's
commitment to a genuine partnership with NGOs.

Africa

While direct AusAID flows to Africa will decrease in 199798 to $88 million,
Australia will contribute significantly to development in Africa through our
multilateral contributions. Including these contributions, Australia will, in
effect, provide nearly $140 million in assistance to Africa in 199798.

Human Rights

Australia will provide $225 000 over three years to strengthen human rights
institutions within the region through the recently-established Asia-Pacific
Regional Forum of National Human Rights Institutions.

I will also be announcing later in 1997 the provision of core funding to help
establish an independent Australia-based Centre for Democratic Institutions.

Future Directions

The report recently delivered by the Simons Aid Review Committee is a fresh,
independent re-examination of Australia's aid policies and activities. It
endorsed my view that the principal objective of Australia's aid program should
be the reduction of poverty through sustainable development as a permanent means
of overcoming such poverty. I expect to announce the Government's response to
the Simons Report, after a period of public comment, by the end of the
year.

Media Contact: Peter Collins (Mr Downer's Office)
06 277 7500 (w) 0411 414 695 (mobile)

Last Updated: 25 February 2013
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