It may come as a surprise, but Australia does not give huge cash donations to impoverished countries. Only about 8% of Australia's development assistance is provided as budget support (and only then once Australia is satisfied that strict controls are in place). By most measures, approximately 80% of development assistance comes back to Australia, either through procurement of goods or engagement of Australian advisers.
What many people don't realise is that expenditure on foreign aid (approximately $4 billion) accounts for less than 1% of the Federal Government's total expenditure. At only 0.25% of Gross National Income, Australia ranks as one of the stingiest among developed countries. Not too long ago, both sides of politics had committed to a target of 0.5% of GNI, but the Abbott government has said that foreign aid will continue to be cut in coming years. The estimate from this year's budget is that we will be down to 0.21% of GNI by 2017. This against an internationally accepted target of 0.7% of GNI. This is a travesty, completely at odds with our perception of ourselves as generous people.
