The overseas development aid budget will hit $3.94 billion in 2019/20, a 6.6 per cent increase on the previous year.
But it will drop to $3.87 billion and then $3.46 billion in the two following years.
By 2022/23, the foreign aid budget will be 11.8 per cent lower in real terms than it will be in this year's budget.
However the budget papers say the coalition is still committed to spending $4 billion a year on foreign aid, with indexation to restart in 2022/23.
Advocates have repeatedly criticised Australia's commitment to foreign aid, after it was slashed in Tony Abbott's 2014 budget and has never recovered.
Foreign Affairs Minister Marise Payne said this year's budget gave a record $1.4 billion to Pacific nations.
"The Morrison government will deepen educational links with the Pacific by providing scholarships for Pacific students to study in Australia in secondary schools and to increase scholarships for vocational education and training," she said on Tuesday.
