29 NOVEMBER 1994 99/94 AID PROGRAMME INCREASES - Britain's aid programme is to be increased. - The ODA's aid budget rises by Pounds 146 million in 1997/98 compared with the provision for 1994/95 published previously. This covers aid to developing countries and assistance to countries in transition (Eastern Europe and the former Soviet Union). - Aid for the poorest countries in Africa and Asia, and the provision of know-how to countries in transition, remain particular priorities for the ODA's work. In all countries the ODA pays close attention to sound economic policies and good government. Aid is particularly concentrated on the poorest 50 countries, which received three-quarters of Britain's bilateral aid in 1993/94. - British contributions to multilateral agencies - especially to the European Community - are planned to increase sharply. Britain continues to work to ensure that the organisations to which it contributes use their resources effectively. - Further improvements in efficiency will be made by holding administrative costs constant in cash terms. Baroness Chalker, Minister for Overseas Development, said today: "The Government has shown that it wants to maintain a substantial and effective aid programme. Despite the pressures on public spending, we will have more funds available. We have a good record in helping poor countries in relieving poverty and suffering, and in helping countries make the transition from planned to market economies. The figures announced by the Chancellor of the Exchequer today will help us to build on these achievements. "We play a prominent role in international development bodies. Today's increases will help to ease the pressure which contributions to international institutions, in particular to the European Community, place on our bilateral aid. Our bilateral aid is widely recognised as highly effective. The Government's decisions confirm the importance we attach to maintaining a substantial bilateral programme. It has clear priorities and efficient management, and provides effective help to countries working towards economic development and good government. Value for money is very important, and administrative costs will be firmly held down to improve further the ODA's efficiency and productivity." NOTES FOR EDITORS 1 The ODA's total programme has three components: Pounds m, cash 1993/94 --- 1994/95--- ---1995/96--- ---1996/97--- 1997/98 Outturn Estimated 1994 New 1994 New 1994 New Outturn Dept Plans Dept Plans Dept Plans Report Report Report Aid Budget 2,111 2,270 (2,182) 2,230 (2,230) 2,278 (2,216) 2,328 Global 8 8 (8) 16 (16) 18 (24) 20 Environment Assistance Overseas 120 118 (118) 117 (117) 123 (123) 130 superannuation Total 2,239 2,396 (2,308) 2,363 (2,363) 2,419 (2,363) 2,478 ------------------------------------------------------------------------------------------------- Pounds m, 1993/94 1994/95 1995/96 1996/97 1997/98 1993/94 prices Estimated New New New Outturn Outturn Plans Plans Plans Aid Budget 2,111 2,225 2,117 2,110 2,109 Global 8 8 15 17 18 Environment Assistance Overseas 120 116 112 114 118 superannuation Total 2,239 2,349 2,244 2,241 2,245 Note that the corresponding figures in the FSBR are rounded to the nearest Pounds 10 million. 2 Since last year, forecast inflation has fallen. This increases the real value of future provisions compared with last year's expectations. 3 Figures from 1994/95 to 1996/97 from the Departmental Report are given in cash terms, to be comparable with those announced in today's Budget. The expected outturn for 1994/95 is higher than the figure previously published because of in-year transfers reflecting mainly a roll-over of European Community expenditure on Eastern Europe and the former Soviet Union in 1992, and the reclassification of certain Commonwealth Development Corporation items.