Finland's development cooperation appropriations - Ministry for Foreign Affairs
Development cooperation appropriations
EUR 886 million is reserved for development cooperation appropriations under the state budget for 2018. 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 544 million.
In 2018, Finland’s development cooperation appropriations total EUR 886 million and represent 0.38% 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 2018, which are considered to fall under development cooperation activities and an estimate of other development policy investments.
Infographic: Finlands development cooperation appropriations 2018 (pdf, 2 pages, 0,5 Mb)
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.
In 2017, Finland's development cooperation appropriations amounted to EUR 935 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.
Both the amount of expenditure used for development cooperation and the proportion of GNI of this expenditure dropped in relation to the previous year. This means that 2017 saw a drop of EUR 21 million from 2016. The proportion of GNI decreased from 0.44 per cent to 0.41 per cent.
The amount covered by development cooperation appropriations for the reception of refugees was EUR 69 million, which was down by 42 per cent on the previous year. The total amount of disbursements increased by EUR 68 million from the previous year due to development policy investments included in development cooperation funding.
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 2016 were Nepal, Ethiopia, Afghanistan, Mozambique, Tanzania, Kenya, Somalia, Turkey, Viet Nam and Myanmar.
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.