Development cooperation appropriations
EUR 989 million is reserved for development cooperation appropriations under the state budget for 2019. The appropriations consist of the exclusive ODA budget item administered by the Ministry for Foreign Affairs and other development cooperation funding. The ODA administered by the Foreign Ministry is EUR 577 million.
Government proposal for the 2020 development cooperation budget
The Government proposes a total of EUR 684.1 for the ODA administered by the Ministry for Foreign Affairs in 2020, of which EUR 5.0 million will be allocated to one-off future-oriented investments. Compared to 2018, the appropriations will increase by a total of EUR 100.3 million.
- EUR 71.7 million expenditure increases, based on the Government Programme
- EUR 5.0 one-off future-oriented investments
- spending limits growth budgeted by previous governments to ensure the level of GNI, joint projects and technical corrections, including funding for Demo Finland and support for the rule of law, totalling EUR 23.6 million.
These increases will ensure that the GNI level of development cooperation is 0.41%.
EUR 129.7 million is proposed for development policy investments. At least 75% of the allocations made during the parliamentary term will be directed to climate finance and 60% to funding purposes in Africa.
The budget proposal will be submitted to Parliament in October.
In 2019, Finland’s development cooperation appropriations total EUR 989 million and represent 0.41% of the gross national income (GNI). The appropriations will be used to fund the ODA administered by the Ministry and for other development cooperation activities.
The Ministry for Foreign Affairs is responsible for Finland’s exclusive ODA budget item. Examples of how these funds are used include bilateral development cooperation between Finland and its partner countries, support for work done by the UN agencies, development banks and Finnish CSOs, and humanitarian aid.
In statistics, other development cooperation funding covers costs arising from the reception of refugees, Finland's contribution to the European Union’s development cooperation budget, and other disbursements falling under development assistance in various administrative sectors. It also includes an estimate of the investments made by the Finnish Fund for Industrial Cooperation Finnfund in 2019, which are considered to fall under development cooperation activities and an estimate of other development policy investments.
In development cooperation, the appropriations allocated for a given year differ from the funds actually used (i.e. the disbursements), because the appropriations are so-called deferrable appropriations. This means that if, for some reason, all the allocated appropriations cannot be used in the first year, they will remain available during the next two years.
Development cooperation is conducted in difficult conditions. It is therefore important allow flexibility in the use of the appropriations. On the other hand, it takes years to achieve lasting development results, which is why a long-term commitment to cooperation is needed.
Finland has pledged to reach the ODA target level of 0.7% as a proportion of GNI.
According to OECD's preliminary results published in April 2018, Finland's development cooperation disbursements amounted to EUR 833 million. This represented 0.36 per cent of Finland's gross national income (GNI). The official development assistance (ODA) administered by the Foreign Ministry was EUR 537 million.
In 2017, development cooperation disbursements amounted to EUR 961.4 million. This represented 0.41 per cent of Finland's gross national income (GNI). The official development assistance (ODA) administered by the Foreign Ministry was EUR 565 million.
In 2016, the disbursements represented 0.44 percent of Finland's GNI.
Statistics on Finland's development assistance disbursements in 2018
Statistics on Finland's development assistance disbursements in 2017
Statistics on Finland's development assistance disbursements in 2016
Development cooperation statistics 2016: Development cooperation appropriations and disbursements (pdf, 3 pages, 16 Kb, in Finnish)
Development cooperation statistics 2016: Disbursements to the largest partner countries and core support to multilateral organisations (pdf, 2 pages, 10 Kb, in Finnish)
Disbursements to the largest recipient countries
The ten biggest partner countries or regions in 2018 were Afghanistan, Ethiopia, Nepal, Indonesia, Kenya, Mozambique, Tanzania, Somalia, Syrian Arab Republic and Vietnam.
On the international level, the OECD Development Assistance Committee (DAC) monitors the ODA performance of its member countries, which submit their reports to it. Statistics showing the OECD/DAC member countries' development cooperation funds can be accessed on the DAC website.
Finland is committed to the promotion of the transparency of development cooperation and also supports this objective internationally. Finland is one of the founders of the International Aid Transparency Initiative (IATI).
IATI's mission is to collect and publish development cooperation information in an easily accessible and comparable form. More than 130 development cooperation actors from governmental donors to foundations and CSOs have committed to it. The aim is to create a common open standard for different development actors. When the various parties report their data in a uniform format, it is easier to make comparisons and exchange of information is more transparent.