Budget 2005: Troubled Pacific states to get boost

A significant boost to overseas aid funding of almost $60 million will be targeted mainly at troubled Pacific states.

Foreign aid spending is to increase by 21 per cent to 0.27 per cent of gross national income (GNI), below the 0.7 per cent target set by the UN for developed countries.

Spending will rise by $59.4 million to $383 million in 2005-2006. There will be a further increase in 2006-2007, expected to be $19 million, to maintain that spending percentage, and a lift of $38 million in 2007-2008 to reach 0.28 per cent of GNI.

The increase follows a report from the OECD last month which praised the restructuring and Pacific targeting of aid delivery by the Government, but criticised its lack of generosity.

New Zealand's spending has lagged around 0.23-0.24 per cent of GNI.