Development cooperation appropriations

EUR 1,343 million is reserved for development cooperation appropriations under the state budget for 2022. The exclusive ODA budget item administered by the Ministry for Foreign Affairs is EUR 772 million.

Development assistance in 2022

It is estimated that the appropriations budgeted for development cooperation for 2022 – a total of EUR 1,343 million – will correspond to 0.50 per cent of Finland’s gross national income (GNI). In the second supplementary budget for 2022, an additional appropriation of EUR 70 million was allocated to development cooperation, reconstruction and humanitarian assistance in Ukraine. 

The appropriations are divided into two categories: the exclusive ODA budget item administered by the Ministry of Foreign Affairs and other development cooperation.

Examples of the use of the ODA administered by the Foreign Ministry include bilateral development cooperation between Finland and its partner countries, support granted to UN agencies, development banks and Finnish CSOs, and humanitarian assistance. In statistics, funding for other development cooperation covers costs arising from the reception of refugees, Finland's contribution to the European Union’s development cooperation budget, and other disbursements counted as development assistance in various administrative sectors. It also includes an estimate of investments considered to fall under development cooperation by Finnfund, which is a Finnish development financier, and an estimate of other development policy investments.

Updated on 1 July 2022. In the second supplementary budget for 2022, an additional appropriation of EUR 70 million was allocated to development cooperation, reconstruction and humanitarian assistance in Ukraine. In addition, it is proposed that under the exclusive ODA budget item transfers between budget allocation table items be used for needs in Moldova and Ukraine that arise from the crisis in Ukraine and for humanitarian assistance in Syria.

The graphic presentation below illustrates Finland’s development cooperation appropriations as they are anticipated to grow in 2022–2026. The figures for 2022 are from the budget, and the figures for 2023–2026 are based on the spending limits decision.

 

Monitoring of development cooperation disbursements

More detailed information on Finland’s development cooperation disbursements is available on the OpenAid.fi website(layout.types.url.description) (Opens New Window). The website shows where, how and when Finland’s development cooperation funds have been used.

Finland has expressed its commitment to raising its development cooperation appropriations to 0.7 per cent of GNI both in the UN and in the EU. During the economic recession in the early 1990s combined with the collapse of GNI, the goal was reached for a short while. In recent years, the share has remained at approximately 0.4 or 0.5 per cent of GNI.

 

Internationally, the OECD Development Assistance Committee (DAC) monitors its member countries’ ODA performance based on the reports submitted to it. Statistics showing OECD/DAC member countries' development cooperation funding on DAC’s website(layout.types.url.description).

Statistics on Finland's development assistance disbursements in the past decades:

Finland's development cooperation appropriations and disbursements 1989–2021 (PDF, 176 KB). The file includes the following tables:

  • Table 1: Development cooperation appropriations and disbursements in 1989–2021
  • Table 2: Public development cooperation disbursements in 2014–2021; exclusive ODA budget item administered by the Ministry for Foreign Affairs by budget allocation tables, and other development cooperation instalments.
  • Table 3: Development cooperation disbursements to the least developed countries in 2014–2021.

Disbursements to the main partner countries, and multilateral partners and multilateral support 2016–2021 (PDF, 321 KB). The file includes the following tables:

  • Table 4: Development cooperation disbursements to the main partner countries in 2016–2021.
  • Table 5: Core funding to multilateral cooperation channels, disbursements counted as development cooperation in 2013–2021.

In statistics on development cooperation, it is typical that disbursements vary by the year even if the budgeted amounts were unchanged.

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 allocated appropriations cannot be used in the first year, they will remain available during the next two years.

Development cooperation is often conducted in difficult circumstances. It is therefore important that the timeframes are flexible when it comes to the use of the appropriations. On the other hand, it takes years to achieve lasting development results, which is why long-term commitment to cooperation is essential.