This is a reprioritisation – not a cut – of our aid budget which will still reach a record $5.

2 billion this financial year. The Australian Government will minimise the impact of this reprioritisation by ensuring that, wherever possible, payments are delayed not reduced. We have looked at activities on a case-by-case basis. Where we have been able to defer the start of an activity we have. For example, in Solomon Islands, we have deferred the commencement of a rural development program by six months. This was done following an assessment that doing so would have little impact on intended recipients. In the Philippines, we have determined that some payments in the education sector could be made in 2013-14 because some activities have been slower to start than originally anticipated. Core payments made to Australia’s NGOs will not be affected. There will be no impact on scholarships (Australia Awards) committed to Asia under the Australia in the Asian Century White Paper That is 12,000 scholarships over five years that will allow Asian Students from developing countries to study in Australia. Australia will still meet its commitment to fast start climate change financing. We will not look to recover money that has been paid for services delivered. Funding for partners critical in responding to humanitarian crises – the ICRC, the WPF and UNHCR – will not be affected. And we remain committed to reaching an aid budget that is 0.5% of GNI by 2016-17.

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