Development Today

Sweden drops aid level to 0.87% of GNI

The Swedish Social Democrat government is cutting the aid budget in the 1995-6 fiscal year to 0.87 per cent of GNI, down from 0.93 per cent. (See DT 1/95)

SEK 13.3 billion is allocated for development spending for the coming year. Out of this amount, almost SEK 1 billion will cover the cost of receiving refugees in Sweden. Though the government reiterates its commitment to return to the 1 per cent of GNI aid level “when the economic situation permits”, critics are sceptical.

Former Development Minister Alf Svensson (Christian Democrat) says it is “incomprehensible” that the Social Democrats spend so much of the aid budget on refugee costs when the party, while in opposition, criticised the government of the day for doing the very same.

Swedish NGOs, whose funds are being reduced, question the government’s commitment to the 1 per cent goal. “It is immoral to cut twice as much on aid as on defence spending,” says Bo Forsberg of Diakonia.