Let them eat cake: Turnbull mulling cuts to foreign aid budget

The Turnbull government is set to make substantial cuts to the overseas aid budget, reducing Australia’s foreign aid contribution to its lowest level in 60 years. 

The Sydney Morning Herald reported on Thursday that the Department of Foreign Affairs is thinking of ways to cut aid to overseas nations by 10 per cent, saving $400 million a year in the process.

It’s the latest in a series of foreign aid budget cuts the government has instigated since 2014. The cuts have already reduced Australia’s overseas contribution to $4.05 billion each year. 

The new budget cut puts Australia well behind many other developed countries that offer foreign aid. The United Kingdom spends 70 cents for every $100 on foreign assistance, while 2015 figures show the US put $49 billion towards overseas aid. By contrast, Australia spends 22 cents for every $100 of gross national income on foreign aid.

The money is used to help drive economic growth in developing countries and create new pathways to pull them out of poverty.

Talk of new cuts has come as somewhat of a surprise. In the last federal election, both the government and opposition aimed to increase overseas development assistance to 50 cents for every $100, although the proposed cuts imply it may be some time before this goal is met.

Read more: Do you think Australia spends too much on foreign aid?

While the decision has faced criticism from those who believe Australia should give even more to overseas countries in need, the government say Third World countries are increasingly less reliant on foreign assistance. 

“The world has changed—and our aid program is changing too,” the government says on its website. “Today, many developing countries are growing rapidly, with aid representing an increasingly small proportion of development finance.

“To be effective in this new context, our aid is becoming more innovative and catalytic, leveraging other drivers for development, such as private sector investment and domestic finance. We are recasting our aid program in light of this new development paradigm.”

As such, the Australian aid program now focuses more on the Indo-Pacific region, with more attention on the surrounding countries where Australia can really make a difference. The new proposed cuts are part of the government’s plan to make savings before the May 8 budget.

The Sydney Morning Herald claims it’s not yet known when a formal announcement will be made. 

What do you think? Is it a good idea that Australia cuts aid to foreign countries? Should the government be focusing on Australians first, or do the poor overseas need our help?