Despite the downturn in the economy, today's Budget is likely to increase the amount available for overseas development aid by more than €60 million, The Irish Timeshas learned.
Such an increase would keep Ireland on course to achieve the United Nations target of devoting 0.7 per cent of Gross National Product to overseas aid by 2012, three years ahead of the 2015 date set by the European Union.
This would be in line with the undertaking given by Taoiseach Bertie Ahern at the United Nations General Assembly in September 2005.
The expected increase of more than €60 million would bring aid spending to at least €875 million per annum. This year, Ireland has surpassed its interim target of spending over 0.5 per cent of GNP on aid.
The Organisation for Economic Co-operation and Development (OECD) ranks Ireland as the sixth most generous donor country in the world in per capita terms.
It is understood that, despite a tightening of the public purse, there was no resistance from Minister for Finance Brian Cowen to an increase in aid funding. High-level sources said there was "no battle" over the increase, which was "seen as separate and special".
The extra funding will be used to bolster initiatives such as the Rapid Response Initiative, the Hunger Task Force, the Conflict Resolution Unit and the Inter-Departmental Committee on Development.
In 2008, Irish Aid, a division of the Department of Foreign Affairs, will establish its ninth bilateral country-to-country aid programme in Malawi. An embassy has been opened in the capital, Lilongwe, and work is in progress to set up the aid programme. Malawi is one of the most underdeveloped countries, coming 166 out of 177 on the UN Development Programme's Human Development Index.
The extra funding will also boost the campaign against HIV and Aids, which continues to be a priority within the Irish Aid programme.
Last year Irish Aid spent over €100 million on HIV and Aids and other communicable diseases, with a special focus on children.
Colin Roche of Oxfam Ireland said: "We would welcome the Government moving forward with their aid commitment and bringing Ireland towards the target the Government set in September 2005."