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Appendix

Aid flows
Aid program expenditure
Technical notes
Methodology of AusAID estimates
Notes to tables and diagrams

Aid flows

Table 2: Australia's ODA 1971-72 to 2002-03

Table 2: Australia's ODA 1971-72 to 2002-03

Diagram 14: DAC member countries' ODA/GNI ratios 2001

Diagram 14: DAC member countries' ODA/GNI ratios 2001

Source: DAC provisional figures for members' 2001 ODA

Diagram 15: DAC member countries' net ODA 2001

Diagram 15: DAC member countries' net ODA 2001

Source: DAC provisional figures for members' 2001 ODA

Diagram 16: Total net resource flows to aid recipient countries

Diagram 16: Total net resource flows to aid recipient countries

Source: DAC online databases

Table 3: Total aid flows to aid recipients not detailed in Table 1

Table 3: Total aid flows to aid recipients not detailed in Table 1

Aid program expenditure

Table 4: Country programs expenditure estimates and outcomes

Table 4: Country programs expenditure estimates and outcomes

Table 5: Global programs expenditure estimates and outcomes

Table 5: Global programs expenditure estimates and outcomes

Table 6: Total ODA by subprograms

Table 6: Total ODA by subprograms

Table 7: Official aid through Australian and non-Australian NGOs

Table 7: Official aid through Australian and non-Australian NGOs

Table 8: Developing country students supported in 2002-03

Table 8: Developing country students supported in 2002-03

Technical notes

General

Normal rounding rules apply where the end digit is less than five. In accordance with the Department of Finance and Administration guidelines, where the end digit equals five, the numbers are rounded up to the next digit. Totals and percentages are calculated on unrounded totals. Columns may not add due to rounding.
This paper shows detail of total ODA including expenditure by OGDs that is classifiable as ODA.
Where real figures are presented the Non-Farm GDP deflator has been used.
All estimates are exclusive of recoverable GST.
All amounts are in Australian dollars (AUD) unless otherwise indicated.
`Current prices' express values in terms of the prices in the year of expenditure. `Constant prices' express values adjusted for inflation in terms of a chosen base year, which is the financial year 2001-02 in this publication. A `real' increase or decrease refers to the change in figures adjusted for inflation (that is based on constant prices). A `nominal' increase or decrease refers to the face value change between figures that have not been adjusted for inflation (that is based on current prices).
Where not stated the source of data is AusAID.

Change in terminology from GNP to GNI

In 2001, the Development Assistance Committee (DAC) officially converted from publishing ratios in terms of ODA/Gross National Product (GNP) to ODA/Gross National Income (GNI). In line with this conversion, all future information published on the aid budget will use the concept of GNI.

Australia actually converted from GNP to GNI in 1998 in line with international decisions on a new System of National Accounts and commenced reporting to the DAC using GNI in the 1998 reporting year. The effect is that there is no difference to the reported ratios for Australia.

GNI and GNP are very similar, although GNI has generally been higher than GNP, resulting in ODA/GNI ratios slightly lower than previously reported ODA/GNP ratios. GNI comprises GDP plus net receipts of income from non-residents.

Development indicator tables provide data on GNP per capita, not average yearly income or GNI per capita. GNI per capita figures for partner countries are not available from the DAC.

Difference between accrual expenses and cash

Presentation

In this Budget Statement, all figures prior to 1999-2000 are in cash terms (that is, the amount of cash paid out in a particular year). The Government moved to an accrual budgeting framework in 1999-2000 and subsequently, budget estimates, for example, Tables 4 and 5, are presented in terms of expenses. Multi-year liabilities, such as payments to the Asian Development Fund (ADF), IDA and IFAD are recorded as an expense at the time of signing the Instrument of Commitment/Contribution, not when the cash is paid out. This accounting treatment is used in AusAID's financial statements, available in the Foreign Affairs and Trade Portfolio Budget Statement on the Internet at http://www.dfat.gov.au/dept/budget.

Total ODA estimates for 1999-2000 onwards (for example in Table 1) are adjusted from an expense basis by excluding the expenses booked for new multi-year commitments and including the cash paid for those same agreements. Adjustments are also made for things such as movements in creditors and depreciation.

Estimates of sectoral expenditure are in cash terms throughout. Total ODA continues to be measured in terms of cash. A number of tables in this Budget statement include an `accrual adjustment' figure prior to calculating ODA. This figure includes adjustments for depreciation, investment, and expected net change in creditors. Table 6 also details the adjustments required to multi-year liabilities, such as the multilateral development banks, to convert expenses to cash.

Conversion

Apart from those individual estimates affected by multi-year liabilities, the difference between cash and expenses is quite small. The differences can be summarised as follows:

Pacific expense estimate is less than cash due to the Nauru Settlement Treaty ($2.9 million) not being expensed in 2001-02 (the full value of the Nauru Settlement was recorded as an expense in 1993-94). In Table 1, the $2.9 million cash for the Nauru Settlement is included with the flows to Nauru to give a more comprehensive picture of Australia's contribution to the country in 2002-03.
MDB expense estimate (Table 5) is nil as Australia does not expect to enter into any new multi-year contributions this financial year. Figures in Chapter 4 reflect the ongoing cash contributions Australia is making to these international institutions ($234 million), to give a more accurate picture of the aid flows going to these organisations within the budget year. With the exception of MDBs and international environment programs, all other global program expense estimates are equal to cash.
International environment programs expense estimate of $78.8 million relates to ITTO, MPMF and the GEF. Cash payments to the ITTO, MPMF and GEF are factored into total flows shown in Table 1. Figures in Chapter 4 reflect the ongoing cash contributions Australia is making to these organisations.
Depreciation of administered assets ($0.6 million) is funded as a separate line.

Methodology of AusAID estimates

Estimated total aid flows

In estimating total aid flows, AusAID begins with budget estimates for particular countries (specific country program estimates). To these are added estimates of expenditure from regional and global programs that do not have country allocations specified at budget time. Such estimates reflect previous expenditure patterns, and are subject to change throughout the year. Estimated total aid flows also include ODA expenditure by other Government departments.

Estimated sectoral expenditure

While the sectors identified by the Government in Better Aid for a Better Future are high priorities for the Australian aid program, centralised allocations are generally not made for expenditure on a particular sector. Programming decisions are made on the basis of individual country strategies that are developed in consultation with partner governments, addressing their priority needs.

Expenditure in any particular sector is thus the result of numerous programming decisions, made in accordance with Government policy but not determined at budget time. Estimates published in this Budget statement are qualified and are subject to programming decisions throughout the year.

Sectoral expenditure estimates reflect of past trends in expenditure recorded in AusAID's AMS for 2000-01 and 2001-02. The AMS tracks planned and actual expenditure on individual projects. Each project is allocated sector codes, in accordance with DAC guidelines, which reflect the primary focus of the project, as well as attributing secondary codes to track indirect expenditure. The 2001-02 estimated expenditure extracted from the AMS in March includes planned expenditure to the end of the year, which was adjusted to account for over-programming. To this was added estimates for sectoral flows from multilateral organisations, based on these organisations' reports. Further information relating to the value of imputed flows from multilateral organisations can be obtained from the Information and Research Services Unit, AusAID (ph 02-6206 4000).

Expenditure on the cross-cutting issues of environment and gender overlaps with expenditure on other sectors and should not be compared on the same basis.

Other estimates

Other figures estimated by methods similar to those outlined above include total flows through NGOs (which includes desk estimates of expenditure on NGOs funded through country programs).

Notes to tables and diagrams

Table 2

1 Based on Non-Farm GDP(E) Implicit Price Deflators provided by the ABS, which have been rebased to 1999-2000.

2 See Technical notes for an explanation of the change in terminology from GNP to GNI.

3 Australian Government contributions towards costs of educating private students from developing countries in Australian tertiary and secondary educational institutions were included in ODA for the first time in 1983-84.

4 In 1988-89 there was a one-off bringing forward of MDB payments, increasing 1988-89 but decreasing 1989-90 ODA expenditure.

5 This represents a real per cent increase over the 2001-02-budget figure of $1,725.0 million (at 2001-02 constant prices) as detailed in Table 1.

Table 3

1 See Technical notes for an explanation of the relationship between expenses and cash.

2 OGD unallocated includes ODA eligible expenditure by other government departments which has not been allocated to a particular country or region.

3 Core contributions to multilateral organisations, other ODA expenditure includes, for example, expense payments which cannot be attributed to a particular country such as payments to some UN and Commonwealth organisations, and Departmental expenditure. The ODA eligible components of cash payments to IDA, ADF, IFAD, GEF, HIPC and the MPMF are included in this line item.

Table 4

1 See Technical notes for an explanation of the relationship between expenses and cash.

2 For the purposes of this table, Micronesia includes the Federated States of Micronesia, Palau and the Republic of the Marshall Islands.

3 Nauru Additional represents additional funding appropriated under 2001-02 Additional Estimates and a new measure for 2002-03 to meet the $10 million pledge of assistance agreed between the Nauru and Australian Governments in December 2001.

Table 5

1 See Technical notes for an explanation of the relationship between expenses and cash.

2 Due to a reduced call on emergency aid funds in 2000-01, humanitarian aid for 2000-01 increased.

3 Includes $4 million additional humanitarian aid carryover.

4 From 1999-2000 onwards, only new commitments to the MDBs are recorded as expenses. See Chapter 4 for details of 2002-03 cash contributions to these organisations.

5 Other international programs include the GEF, MPMF, ITTO and international health programs. See Chapter 4 for details of 2002-03 cash contributions to these organisations.

Table 6

1 See Technical notes for an explanation of the relationship between expenses and cash.

2 ACIAR's figure equals their total cash expenditure. ACIAR's full financial statements are available in the Foreign Affairs and Trade Portfolio Budget Statement at http://www.dfat.gov.au/dept/budget.

3 Other ODA includes ODA eligible activities by State Governments and Commonwealth Agencies other than AusAID and ACIAR. Included, for example, are capital contributions to MDBs, funded by Treasury appropriations, or assistance to East Timor provided by the Australian Federal Police Service.

4 Includes adjustments for non-ODA eligible Administered expenditure such as revenue items, fringe benefits tax, and other non-ODA eligible expenditure.

5 Includes adjustments for non-ODA eligible Departmental expenditure such as receipts under Section 31 of the FMA Act, interest earned on bank deposits, departmental carryover, the net increase in aid program creditors and depreciation.

6 Refer to the explanation of multi-year liabilities in the Technical notes.

Table 7

1 Expenditure for 1998-99 through to 1999-2000 corresponds to figures published in NGO annual reports.

2 See Technical notes for an explanation of the relationship between expenses and cash.

Table 8

1 Includes partially aid funded East Timorese students who have been offered `free' places by universities in Australia. Australia is providing funding through the Department of Education, Science and Training to assist with living allowances for these students. There are expected to be approximately 40 students in this category studying in Australia next year.