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Budget 2009 - keeping our promises to the world's poorest people

22 April 2009

The Budget, presented today by the Chancellor of the Exchequer, means that the UK government is keeping its promises to the world's poorest people and remains committed to achieving the Millennium Development Goals.  The government's forecast for overseas aid  (known as official development assistance - ODA) for 2010-11 remains at £9.1 billion as we pledged in the Comprehensive Spending Review (CSR) in 2007.

Efficiency savings to be achieved without jeopardising help for poor people

The current economic climate means that DFID, like all government departments, will make additional efficiency savings in 2010/11. DFID’s 2010/11 expenditure will be £155 million less than anticipated under the 2007 CSR settlement. But these savings will not jeopardise front-line projects.  DFID is committed to making sure every pound spent as aid has the greatest impact possible. Continuing to strive for greater efficiency and value for money will not affect major UK aid commitments or the aid going to the poorest. We remain committed to delivering the spending targets set out in the CSR  including to spend £1 billion on education in 2010-11 and to spend at least £3 billion in Africa by 2010.

DFID is the main, but not the only, government department which contributes to ODA - other departments like DECC and FCO, spend money on development overseas. Since other government departments like these forecast that they will be spending more ODA than anticipated at the CSR, the government is still on track to deliver £9.1 billion ODA by 2010/11 as set out in the CSR

DFID's budget will still grow

DFID's budget will still grow at an average real growth rate of 11.4% up to 2010-11 and the UK's ratio of ODA to gross national income (GNI) will still be higher in 2010-11 than the 0.56% European target, and we are on track to deliver 0.7% ODA/GNI in 2013.

The UK, unlike many donors, is delivering on its aid commitments. Total UK ODA in 2008 was £6.8 billion (0.43% of GNI)- up from £4.9 billion (0.36% of GNI) in 2007.