Aid budget at lowest level

PNG and Cambodia have escaped foreign aid cuts despite the imminent closure of the Manus Is immigration detention centre and a failed refugee resettlement deal.

PNG and Cambodia have escaped foreign aid cuts

PNG and Cambodia have escaped foreign aid cuts in this year's budget. (AAP)

Papua New Guinea and Cambodia have escaped foreign aid cuts despite the imminent closure of the Manus Island immigration detention centre and a failed refugee resettlement deal.

Tuesday's federal budget gutted Australia's foreign aid budget by a further $224 million in the 2016-17 financial year, bringing official aid to $3.8 billion.

This represents 22 cents for every $100 of national income - an all-time low.

The aid program is still reeling from the $1 billion stripped away in last year's budget and the $11 billion since 2013 taken for bottom-line savings.

Indonesia had five per cent or $15 million shaved from its assistance in 2016-17, on top of the 40 per cent hit from last year. Its aid program is now worth $296 million.

Other countries were let off the hook.

Foreign Minister Julie Bishop insists Australia's aid program must focus on the immediate region, especially Pacific island nations.

Papua New Guinea remains Australia's largest recipient of foreign aid.

In 2013, PNG secured a $420 million one-off aid sweetener from the Rudd government to revive the Manus Island detention centre and kick start a refugee resettlement program.

The PNG government has announced it will close the detention centre, following a decision by the country's Supreme Court that ruled it illegal.

The fate of 900-odd men detained there remains unclear, but Australian officials travelled to Port Moresby at weekend for talks.

Several hundred million dollars of the special aid package is unspent, but PNG will still receive its annual $49.4 million contribution in 2015-16 and 2016-17.

Likewise, Cambodia's aid program remains untouched despite the lack of refugees opting to be resettled in the southeast Asian kingdom.

Australia offered Phnom Penh a $40 million aid package to accept refugees for resettlement on a voluntary basis in 2014.

Only five have accepted the offer and of those three have returned to their country of origin.

Cambodia will still get its $10 million of aid a year under that deal on top of its regular support.

There was also $15 million allocated for refugee resettlement costs but only $2.71 million has been spent so far.

Meanwhile, from 2017-18 there will be a gradual increase in overall aid support.

In four years the aid budget is projected to return to $4.1 billion a year.


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Source: AAP


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Aid budget at lowest level | SBS News