Messages of Hope

The 2018 Federal budget – and overseas aid

Published / by Sandy

On Tuesday May 9th, the Federal Treasurer handed down the 2018 budget, with the hope of being ‘in the black’ from next year. There will be ongoing commentary and analysis on the details of the budget.

Every year, the budget allocates funding to overseas aid which improves the lives of millions of people around the world. It is an investment in a better future for our world and our neighbours. It also promotes Australia’s interests by contributing to sustainable economic growth and poverty reduction. In a globally interconnected world, less poverty and inequality is good for everybody. Social and economic stability reduces the risk of political instability, just as access to education for all plays a part in reducing the emergence of radicalisation and better equips communities to respond to it if it occurs – all of which benefits Australia in the long term.

After significant cuts to overseas aid in recent years, the overseas aid budget was frozen in 2017 for 2 years, and in the 2018 budget this freeze has been extended for a further 4 years, dropping to its lowest level in our nation’s history at just 19 cents in every $100 of Gross National Income. The people who suffer the most are the millions of people who rely on Australian aid in our region. As a consequence of the cuts, there will be a greater reliance on the contribution from churches, aid agencies and charities, which will have to work even harder to close the huge gap in overseas aid.The spirit of generosity of ordinary Australians is reflecting in the fact that 80% contribute to organisations that help vulnerable communities.

The Australian aid sector has been calling for an increase in overseas aid as a step towards returning our overseas aid budget towards levels in accord with our international obligations. Earlier this year, ACFID (Australian Council for International Development), of which the Uniting Church is a member through its agency Uniting World, had campaigned to prevent an additional $400 million in cuts to foreign aid that were being considered. These cuts were dropped, but the decision to freeze the foreign aid budget comes at a time when we see global inequality on the rise and millions of people fleeing violence and oppression.

This is not a time when overseas aid can be put ‘on hold’ for four years, especially when we see what is happening in the lives of our global neighbours.

In 2000, Australia signed on to the Millennium Development Goals (MDG), joining 199 other nations aiming to halve extreme poverty by 2015. But in recent years Australia has been shrinking from its role on the world stage. While other countries have increased their aid programs, Australian aid is now at its lowest level ever, falling to 19th of the 29 countries that give overseas aid.

The hope is that a bi-partisan commitment can be made so that the overseas aid budget can reach 0.7% of GNI by 2030 commensurate with Australia’s international obligations and the commitments made as part of the MDGs.

Australian aid provides opportunities for our global neighbours to build a better future. It is work we should celebrate now, and look back on with pride in years to come. Can we champion a response to reducing poverty that is as generous as the Australian people?

Perhaps this something you feel strongly about, or you would like to know more? More information is available on the Campaign for Australian Aid website, and you can also find information on the Campaign for Australian Aid Facebook page. Campaign for Australian Aid is a joint initiative of Make Poverty History and Micah Challenge coalitions for all Australians who believe we can and should do more as a nation to end extreme poverty around the world.

Sandy would be glad to chat with you about this if you would like more information, or would like to learn about the impact on our partner churches supported through Uniting World.

Perhaps you might consider writing to or arranging a meeting with your Federal MP to share you concerns about this important matter?

(This article includes information collated from statements from ACFID, World Vision, Uniting World and Campaign for Australian Aid)Overseas aid as well as the contributions of individuals, groups and churches, is essential to supporting our partner churches in Asia, Africa and the Pacific through the UCA agency Uniting World. The diagram shows how this funding is used.