Australia's foreign aid spending has taken a further hit, but the federal government remains committed to meeting previous growth benchmarks.
Labor's economic statement outlines savings of $879 million over four years from the aid budget, and the measures include the redirection of some funds to manage asylum seekers processed offshore.
Treasurer Chris Bowen said spending had been manipulated so Australia remained on track to boost overseas development assistance to 0.5 per cent of gross national income (GNI) by 2017/18.
"But we will get there in a different profile," he said on Friday.
The government originally promised to reach the 0.5 per cent target by 2015/16 but pushed it back to 2016/17 in last year's budget, before announcing a further delay in May, sparking an outcry from charity organisations.
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"I would emphasise that our expenditure in both dollar amounts and as a percentage of GNI will continue to grow and the aid budget will still reach $5.7 billion in 2013/14, Australia's largest aid budget in history," Finance Minister Penny Wong said.
Labor's Papua New Guinea asylum seeker resettlement plan will cost $1.1 billion over the budget forward estimates, Senator Wong said.
The cost would be partly balanced by the saving of $423 million previously allocated to Australia's onshore processing centres.
In addition, Australia will grant $420 million in new aid to PNG to assist health, education, justice, law and order and transport programs.
"This will be funded by redirections in AusAid programs but not from existing PNG programs," Senator Wong said.
