AID:Spending on overseas development aid is set to increase by €84 million next year, it was announced in yesterday's Budget.
The increase will bring total overseas aid spending to €914 million per annum, meaning Ireland's overall spending in this area will stand at 0.54 per cent of Gross National Product (GNP) in 2008.
Welcoming the announcement, Minister for Foreign Affairs Dermot Ahern said the increase meant that Ireland remains on course to achieve the United Nations target of allocating 0.7 per cent of GNP to overseas aid by 2012, three years ahead of the date set by the European Union.
"This commitment cements Ireland's position as one of the most generous donors of overseas aid," Mr Ahern said. "Our overseas aid will allow Ireland to be at the forefront of international efforts to reach the UN millennium development goals."
Minister of State for Overseas Development Michael Kitt said the extra resources would be spent in a number of areas, including funding civil society programmes in countries where Irish Aid - the Government's overseas development division - operates.
The extra funding would also help establish Irish Aid's ninth bilateral aid programme in Malawi next year. In addition, Mr Kitt said the Government would increase the level of support it provided for the work of Irish aid agencies and missionaries.
Aid agencies welcomed the increase in spending. "The increase is very welcome from our point of view and it appears the promise to achieve 0.7 per cent of GNP by 2012 is very much on track," said Eamon Casey, policy officer with Dóchas, an umbrella group representing 37 development organisations.
"This is a solid start for the new government's aid programme," said Colin Roche, Oxfam Ireland's policy and advocacy co-ordinator.
Minister for Finance Brian Cowen also announced the allocation of €90 million in phased instalments to the International Development Association, the lending arm of the World Bank.
While welcoming the overall increase in spending on overseas development, Trócaire called for the Government to use its influence within the World Bank to "encourage much-needed reform of its lending policies to developing countries."