The 19 largest Dutch aid organizations will receive a total of euro2.1 billion (USD2.9 billion) in government subsidy, short of the euro3 billion they have sought.
The amount may still shrink after the new cabinet introduces fresh cuts, Radio Netherlands Worldwide reports.
Dutch minister for development cooperation Ben Knapen said non-governmental aid organizations should be more independent in terms of finding resources.
“I sincerely believe that people concerned with the fate of others have doubts about how taxpayers’ money is spent. So we have to show results and communicate openly about things that go wrong. We also have to actively involve the public and businesses,” Knapen said.
Dutch aid groups currently need to secure a quarter of their budget from other sources, but the proportion should be increased, according to Knapen.
Dutch “people think development aid should be given in exchange for good governance and trade with Dutch firms. And that businesses should support development organisations,” said Mirjam van Reisen, managing director of the European External Policy Advisors.
Prime Minister Mark Rutte has repeatedly said he wants to cut the budget for development funding in half, Radio Netherlands Worldwide reports.