Norway proposes cutting aid share to 46-year low

Norway announced plans to cut the proportion of gross national income that it spends on foreign aid Thursday, triggering criticism from civil society — which labeled the move “embarrassing” and a bad example for the rest of the world.

The government’s 2023 budget proposal, which must still be debated and voted in parliament, foresees an overall aid budget of 43.8 billion Norwegian kroner ($4.1 billion), or 0.75% of GNI. That’s down from the 47.4 billion kroner or 1.15% of GNI that it allocated for aid spending in its revised 2022 budget.

One of the world’s most generous donors, Norway’s aid budget has hovered near 1% of GNI since 2009. If the proposed budget goes ahead, 0.75% would be the lowest share of GNI for foreign aid since 1976.

The government said Thursday that it expects a record 1.38 trillion kroner in oil and gas revenue next year — an increase of 18% on this year, and a fivefold increase on 2021.

“In a time when Norway is making money like never before, a record LOW portion (0,75%) is budgeted to development aid,” Save the Children Norway tweeted. “Less for children suffering around the world. Embarrassing.”

Carl Björkman, the head of Nordics at the Bill & Melinda Gates Foundation, told Devex by email Thursday that the cross-party commitment to spending at least 1% of GNI on foreign aid was reendorsed when the current government took office less than a year ago.

“It is very disappointing to see this pledge being abandoned and it sets a negative example that I worry can have knock on effects elsewhere,” Björkman wrote. “Their coffers are full … and they could do so much good with that funding to [official development assistance] if they just kept the 1%.”

The newest proposal also includes 1.6 billion kroner to cover the costs of hosting refugees at home, as allowed under the Organisation for Economic Co-operation and Development’s rules — compared to 6.39 billion kroner under the revised 2022 budget .

Norway drew criticism earlier this year for initially shifting 4 billion kroner to cover so-called in-donor refugee costs in the wake of the war in Ukraine — though that reallocation was later reduced to 1.5 billion kroner.

Birgitte Lange, secretary general of Save the Children Norway, told Devex by email that budget negotiations in the coming weeks will give the center-left minority government of Prime Minister Jonas Gahr Støre a chance to “raise their ambitions.”

“Norway can and should uphold the 1 per cent target to ensure Norway really steps up for vulnerable people in these extraordinary times of crises,” Lange said.