Estimates of appropriations

Vote Official Development Assistance - External Sector - Estimates 2018/19

Vote Official Development Assistance#

APPROPRIATION MINISTER(S): Minister of Foreign Affairs (M34)

APPROPRIATION ADMINISTRATOR: Ministry of Foreign Affairs and Trade

RESPONSIBLE MINISTER FOR MINISTRY OF FOREIGN AFFAIRS AND TRADE: Minister of Foreign Affairs

Overview of the Vote#

The Minister of Foreign Affairs is responsible for appropriations in the Vote for the 2018/19 financial year covering the following:

  • a total of $75 million for management of New Zealand's International Development Cooperation, and
  • almost $693 million for delivering International Development Cooperation.

Details of these appropriations are set out in Parts 2 and 3.

Details of Appropriations and Capital Injections#

Annual and Permanent Appropriations#

  2017/18 2018/19
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Management of New Zealand's International Development Cooperation (M34)

This appropriation is limited to advice and representation on international development issues and the management of New Zealand's International Development Cooperation.
66,114 66,114 75,397

Total Departmental Output Expenses

66,114 66,114 75,397

Total Annual and Permanent Appropriations

66,114 66,114 75,397

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Non-Departmental Other Expenses

   

International Agency Funding (M34)

This appropriation is limited to funding to multilateral agencies and international voluntary agencies for development assistance.

Commences: 01 July 2015

Expires: 30 June 2018
Original Appropriation 300,000
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 300,000
Actual to 2016/17 Year End 201,133
Estimated Actual for 2017/18 98,867
Estimated Actual for 2018/19 -
Estimated Appropriation Remaining -

International Development Assistance (M34)

This appropriation is limited to the provision of bilateral and regional official development assistance, including humanitarian activities, for the design, management, implementation and evaluation of development activities and development education, capacity building and co-ordination support to partners. This assistance is for the promotion of the sustainable development and welfare of Pacific and other developing countries.

Commences: 01 July 2015

Expires: 30 June 2018
Original Appropriation 1,400,805
Adjustments to 2016/17 16,437
Adjustments for 2017/18 (5,355)
Adjusted Appropriation 1,411,887
Actual to 2016/17 Year End 863,402
Estimated Actual for 2017/18 548,485
Estimated Actual for 2018/19 -
Estimated Appropriation Remaining -

International Development Cooperation (M34)

This appropriation is limited to providing development cooperation and humanitarian assistance that support the sustainable development and welfare of Pacific Island and developing countries.

Commences: 01 July 2018

Expires: 30 June 2021
Original Appropriation 2,186,718
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 2,186,718
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 -
Estimated Actual for 2018/19 692,996
Estimated Appropriation Remaining 1,493,722

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts#

  2017/18 2018/19
  Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual and Permanent Appropriations 66,114 66,114 75,397
Total MYA Non-Departmental Other Expenses Forecasts 647,352 647,352 692,996

Total Annual and Permanent Appropriations and Multi-Year Appropriation Forecasts

713,466 713,466 768,393

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
Increasing our aid to tackle the biggest global and regional challenges of our time

Management of New Zealand's International Development Cooperation

- 11,930 15,566 19,248 22,892
  Departmental Output Expense          
 

International Development Cooperation

-        
  Non-Departmental Other Expense - 110,427 144,086 178,164 211,904
Total Initiatives   - 122,357 159,652 197,412 234,796

Summary of Financial Activity#

  2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 54,682 55,141 58,079 61,676 66,114 66,114 75,397 - 75,397 78,913 82,595 86,239
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 532,805 513,016 533,992 530,543 647,352 647,352 - 692,996 692,996 729,655 764,067 797,807
Capital Expenditure - - - - - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

587,487 568,157 592,071 592,219 713,466 713,466 75,397 692,996 768,393 808,568 846,662 884,046

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 1,521 320 660 1,209 400 400 N/A 400 400 400 400 400
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

1,521 320 660 1,209 400 400 N/A 400 400 400 400 400

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring#

There have been no restructuring adjustments to prior year information reported in last year's Summary of Financial Activity table.

Total Vote: All Appropriations

Source: Ministry of Foreign Affairs and Trade

The movements in the departmental and non-departmental appropriations in Vote Official Development Assistance (ODA), detailed in the Summary of Financial Activity table above, are largely driven by non-departmental expenditure for the delivery of New Zealand's International Development Cooperation.

Total expenditure in the Vote will increase from $587.487 million in 2013/14 to $768.393 million in 2018/19, an increase of $180.906 million. Of this, $160.191 million relates to an increase in non-departmental expenditure. The departmental output expense increase is $20.715 million.

Details of the significant movement within each appropriation type are described below:

Departmental Output Expenses

Actual departmental output expenses over the two-year period 2013/14 to 2014/15 were largely consistent, with annual expenditure of around $55 million. From the 2015/16 financial year there are progressive annual increases reflecting additional funding, expected to increase from actual expenditure of $58.079 million in 2015/16 to $86.239 million in 2021/22. These increases are driven primarily by the following two factors:

  • funding increases from the new initiatives package approved in Budget 2015 for the New Zealand Aid Programme Strategic Investment policy initiative, being $4.961 million in 2015/16, $7.172 million in 2016/17 and $8.087 million per annum in 2017/18 through the outyears, and
  • funding increases from the new initiatives package approved in Budget 2018 for the management of the International Development Cooperation programme associated with the new funding for "Increasing our aid to tackle the biggest global and regional challenges of our time" totalling $11.930 million in 2018/19, $15.566 million in 2019/20, $19.248 million in 2020/21 and $22.892 million per annum in 2021/22 and the outyears.

Non-Departmental Other Expenses

This is the first year of a new multi-year appropriation (International Development Cooperation) approved for the three-year period 2018/19 to 2020/21, replacing two multi-year appropriations (International Agency Funding and International Development Assistance), which expire on 30 June 2018.

For the current triennium (2018/19 to 2020/21), funding for International Development Cooperation will increase to $2,186.718 million compared to $1,711.887 million for the triennium ending on 30 June 2018, including a total of $432.677 million in new funding from the new initiatives package for "Increasing our aid to tackle the biggest global and regional challenges of our time" approved in Budget 2018. The additional funding approved in Budget 2018 is projected to increase New Zealand's Official Development Assistance as a percentage of Gross National Income to 0.28%.

The increased funding will enable additional investment in a range of areas including:

  • priority issues for the Pacific, especially climate change
  • promoting good governance and transparency, human rights, youth, women's political and economic empowerment in the Pacific
  • funding to multilateral institutions which are responding to global and Pacific development challenges, and
  • responding to the increased scale of humanitarian crises globally and in the Pacific.

1.4 - Reconciliation of Changes in Appropriation Structure#

    Old Structure New Structure
2017/18 Appropriations
in the 2017/18 Structure
2017/18
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2017/18 Appropriations
in the 2018/19 Structure
2017/18
(Restated)
$000
2018/19
$000
Management of New Zealand Official Development Assistance 66,114 Renamed - Management of New Zealand's International Development Cooperation 66,114 75,397

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2 and 3.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Management of New Zealand's International Development Cooperation (M34)

Scope of Appropriation
This appropriation is limited to advice and representation on international development issues and the management of New Zealand's International Development Cooperation.
Expenses and Revenue
  2017/18 2018/19
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 66,114 66,114 75,397
Revenue from the Crown 66,019 66,019 75,302
Revenue from Others 95 95 95
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the provision of informed advice and representation on international development issues and policy, and the effective planning, delivery and accountability for New Zealand's International Development Cooperation.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Financial management#

     

Percentage of development cooperation funding for the partner government sector disbursed in year for which it was scheduled (Bilateral programmes only)

90% 90% 90%

Proportion of Pacific country partner governments provided with an indicative Total Country Aid Programme Budget for the current year plus projections for two or more years in the future

100% >90% 100%

Amount and percentage of Crown ODA resources spent on the Pacific

60% for the triennium (+/- 5% for any given year) 60% 60% for the triennium (+/- 5% for any given year)

Amount and percentage of Crown ODA resources spent on Activities where climate change is a principle objective (see Note 1)

New measure See Note 1 TBC from baseline analysis

Amount and percentage of Crown ODA resources spent on Activities where gender equality and women's empowerment is a principle objective

New measure $6.3m from 9 Activities (2016/17) Increasing trend

Amount and percentage of Crown ODA resources spent on Aid for Trade (see Note 2)

New measure New measure At least 20% of ODA

Amount and percentage of Crown ODA resources spent on core contributions to multilateral agencies (see Note 3)

New measure $104m or 20% (2016/17) Maintain spend

Amount and percentage of Crown ODA resources spent on scholarships (see Note 2 and 4)

New measure $68m or 13% (2016/17) Standard to be set

Amount and percentage of Crown ODA resources spent on strengthening Pacific statistics (see Note 2)

New measure New measure Increasing trend

Amount and percentage of Crown ODA resources allocated to humanitarian activities

New measure $20m or 4% (2016/17) Increasing trend

Policy submissions produced for Ministers under this output expense class

150-200 150 150-200

Quality/performance#

     

Percentage of Activity Monitoring Assessments (AMAs) and Activity Completion Assessments (ACAs) rated as robust (as assessed annually by the independent Annual Assessment of Results) (see Note 5)

New measure AMAs: 75%; ACAs: 84% (2016/17) Increasing trend

Percentage of evaluations (or summaries) that are published to MFAT website within 3 months of completion

100% 100% 100%

Percentage of Programmes rated 4 or higher on a scale of 1-5 by review against the Ministry's quality standard for programme management

>90% >90% >90%

Percentage of Activities rated 4 or higher on a scale of 1-5 by review against the Ministry's quality standard for activity management

>90% >90% >90%

NZ score in Aid Transparency Index

New measure 2014 score of "Fair" or 45.1% Increasing trend

Average score out of 10 of a sample of policy papers reviewed by an external reviewer (NZIER)

7.5 7.5 7.5

Ministerial Services#

     

Number of Ministerial letters prepared

60-90 120 60-90

Number of Official Information Act request (OIA) responses provided

20-50 25 20-50

Percentage of Ministry OIA requests responded to within statutory timeframes (see Note 6)

90% 90% 90%

Percentage of Ministerial OIA request replies completed five days prior to the statutory time limit, unless otherwise agreed (see Note 6)

90% 90% 90%

Percentage of Ministerial OIA request responses that are factually accurate, meet any legislative requirements, and contain no avoidable errors, measured by rejection rates by the office of each Minister

95% 95% 95%

Average number of days to send final OIA request response to a requestor (for Ministry OIAs) (see Note 6)

25 days 25 days 25 days

Average Ministerial satisfaction score

4 or above on a 5 point scale 4 or above 4 or above on a 5 point scale

Note 1 - Estimated actual is "Adaptation: $9.900 million, 16 activities; Mitigation: $9.300 million, 15 activities". The standard is to be disaggregated by adaptation and mitigation.

Note 2 - This is a Sustainable Development Goal. Detailed guidance can be found at https://unstats.un.org/sdgs/metadata/.

Note 3 - Standard in full is "Maintain spend within 5% of agreed allocation". Standard to be confirmed once 2018/19-2020/21 allocation approved.

Note 4 - Standard in full is "Standard to be set once Triennium allocation agreed".

Note 5 - AMAs are annual internal assessments completed by the Ministry of Foreign Affairs and Trade to monitor the performance of Activities in implementation, while ACAs are internal Ministry of Foreign Affairs and Trade assessments of performance undertaken after the completion of the Activity.

Note 6 - Ministerial OIAs are requests of the Minister responsible for the Foreign Affairs and Trade portfolios. Ministry OIAs are requests of the Chief Executive of the Ministry of Foreign Affairs and Trade.

The Ministry applies safeguards to ensure accountability of the Vote ODA budget. These include:

  • approved financial delegations
  • triennium allocations approved by the Minister of Foreign Affairs
  • a robust online system of aid management that captures information on budgets, contracts and performance information, from the appropriation level down to the individual contract level
  • quality standards for programme and activity management that are assessed through an annual quality management review
  • transparency commitments, which include reporting activity data to the OECD and International Aid Transparency Initiative, and
  • public reporting including: indicative annual allocations by Programme on www.aid.govt.nz at the time of approval; actual spend by Programme and appropriation in the Ministry of Foreign Affairs and Trade Annual Report. This also incorporates Public Finance Act - Section 32A reporting on the performance of Non-Departmental appropriations; and each multi-year appropriation, forecast by year, in the Statement of Intent, Estimates and Information Supporting the Estimates.
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Foreign Affairs and Trade in its Annual Report to be presented to the House.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Increasing our aid to tackle the biggest global and regional challenges of our time 2018/19 - 11,930 15,566 19,248 22,892

Previous Government

           
New Zealand Aid Programme Strategic Investment 2015/16 8,087 8,087 8,087 8,087 8,087
Reasons for Change in Appropriation

The appropriation increased by $9.283 million to $75.39 million for 2018/19, due to:

  • an increase of $11.930 million from the new initiatives package approved in Budget 2018 for the management of the International Development Cooperation programme associated with the new funding for "Increasing our aid to tackle the biggest global and regional challenges of our time"
  • an expense transfer of $240,000 to progress the removal of asbestos from Ministry buildings at overseas posts, particularly in the Pacific, and
  • an increase of $113,000 resulting from foreign exchange rate and overseas inflation movements.

The increases are partially offset by:

  • a one-off expense transfer of $2 million from 2016/17 to enable the completion of the implementation of the outcomes of an internal capability in the 2017/18 financial year, and
  • a one-off expense transfer of $1 million from 2016/17 to enable the management of the capacity required to deliver forecast Official Development Assistance activities in the 2017/18 financial year.

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

International Development Cooperation (M34)

Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

International Development Cooperation (M34)

This appropriation is limited to providing development cooperation and humanitarian assistance that support the sustainable development and welfare of Pacific Island and developing countries.

Commences: 01 July 2018

Expires: 30 June 2021
Original Appropriation 2,186,718
Adjustments to 2016/17 -
Adjustments for 2017/18 -
Adjusted Appropriation 2,186,718
Actual to 2016/17 Year End -
Estimated Actual for 2017/18 -
Estimated Actual for 2018/19 692,996
Estimated Appropriation Remaining 1,493,722
Components of the Appropriation

The components of this appropriation include the design, management, implementation and evaluation of activities intended to achieve sustainable development objectives. This can include capacity building initiatives, coordination support to partners, research on development issues and development education and awareness in New Zealand. Activities approved under the appropriation will reflect the Official Development Assistance (ODA) definition and reporting directives of the Organisation for Economic Cooperation and Development along with the provision of assistance to Pacific Island countries irrespective of their eligibility for ODA. There may also be a small amount of expenditure that does not meet either criteria. This may be due to definitional changes after a contract is signed or for other usually administrative reasons.

The appropriation is delivered through four Ministry managed allocations (Pacific development cooperation, humanitarian assistance, multilateral agency funding, and global development cooperation), which are agreed with the Minister of Foreign Affairs. These allocations reflect the intent to help address global and regional development challenges and to invest in results for our partner governments. They also enable delivery of development cooperation and humanitarian assistance through bilateral, regional, multilateral and partnership channels.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve progress by Pacific Island and developing countries against their sustainable development priorities and against the 2030 Agenda and Sustainable Development Goals.

How Performance will be Assessed and End of Year Reporting Requirements
  2017/18 2018/19
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Development results (long term outcomes that NZ contributes to alongside many other partners)#

     

Well-being

     

Proportion of population below the international poverty line (see Note 1, 2 and 3)

New measure New measure Maintain or increase number with improving trend

Mortality rate in the Pacific attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease (probability of dying between the ages of 30 and 70 years) (see Note 2 and 3)

New measure 22%-36.1% from 7 countries (2015) Maintain or increase number with improving trend

Proportion of children and young people, in the Pacific: at the end of primary education achieving at least a minimum proficiency level in (i) reading and (ii) mathematics (see Note 2)

Revised measure Literacy: 46%, Numeracy: 68% (2015) Maintain or improve trend

Proportion of youth (aged 15-24 years) not in education, employment or training, in the Pacific (see Note 2 and 3)

New measure New measure Maintain or increase number with improving trend

Neonatal mortality rate (per 1,000 live births), in the Pacific (see Note 2 and 3)

New measure 7/10 countries showed improving trend (2016/17) Maintain or increase number with improving trend

Proportion of population with new or improved access to electricity, in the Pacific (see Note 2 and 3)

New measure New measure Maintain or increase number with improving trend

Environment

     

Proportion of key tuna fish stocks within biologically sustainable levels, in the Pacific (see Note 4)

Maintain or improve trend 4 out of 4 Maintain

Economy and governance

     

Annual growth rate of real GDP per capita (see Note 1, 2 & 3)

New measure 5/9 countries showed an improving trend Maintain or increase number with improving trend

Governance and effectiveness index (Rank) in bilateral partner countries

Maintain or increase number with improving trend Average rank of 29 across 14 countries Increasing average rank

Development Cooperation results in the Pacific (short to medium term outcomes more attributable to NZ support)#

     

Well-being

     

Age-standardized prevalence of current tobacco use among persons aged 15 years and older, in the Pacific (see Note 2 and 3)

New measure New measure Maintain or increase number with improving trend

People in the Pacific that have received essential medicines or services at primary health facilities

New standard New standard 80% of activities meet their respective targets

People that complete tertiary or vocational training scholarships

Revised measure >90% >90% of people who were awarded scholarships

Environment

     

Renewable energy share in the total final energy consumption (in targeted area) in the Pacific (see Note 2)

Maintain or increase number with improving trend >37% Maintain or improve trend

Progress by Pacific Island countries in the degree of implementation of international instruments aiming to combat illegal, unreported and unregulated fishing (see Note 2 and 3)

New measure New measure Maintain or increase number with improving trend

Economy and governance

     

Number of Pacific Island countries that remain on track on their economic and public sector reform programme (see Note 5)

New measure 7 countries Maintain or improve trend

Pacific Island people who return home with improvements in skills or qualifications after participating in labour mobility programme (M/F)

New measure New measure Maintain or improve trend

People showing improvements in knowledge, attitude or practice after receiving Fisheries training/support

New measure New measure 90% of respondents show improvement

Resilience and humanitarian response

     

New Zealand responses to natural disasters in the Pacific are launched within mandated timeframes (%)

100% 100% 100%

People trained to strengthen resilience (disaster risk reduction and climate change adaptation) (No., M/F)

Maintain or increase number with improving trend 3,637 people (2016/17) Maintain or improve trend

Number of affected people provided with essential and useful assistance following a natural or human induced disaster (No., M/F) (see Note 2)

Standard dependent on need To be measured at year end Standard dependent on need

Quality

     

Percentage of Activities with effectiveness rated as good or better (based on MFAT Activity Completion Assessments)

New measure New measure Baseline to be established

Commitment to Development Index score

New measure 2017: 5.12; 5-year average 5.15 Improve trend

Note 1 - To be disaggregated by Least Developed Countries (LDCS) and Pacific Islands.

Note 2 - This is a Sustainable Development Goal. Detailed guidance can be found at https://unstats.un.org/sdgs/metadata/.

Note 3 - Standard in full is "Maintain or increase the number of countries with an improving trend".

Note 4 - Standard in full is "Maintain: 4 out of 4 key fish stocks assessed as being above sustainable biological limits as at end 2017".

Note 5 - Estimated actual in full is "7 countries (Samoa, Tonga, Tuvalu, Kiribati, Cooks, Niue, Tokelau)".

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister of Foreign Affairs in a report to be appended to the Annual Report of the Ministry of Foreign Affairs and Trade to be presented to the House.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2017/18
Final Budgeted
$000
2018/19
Budget
$000
2019/20
Estimated
$000
2020/21
Estimated
$000
2021/22
Estimated
$000

Current Government

           
Increasing our aid to tackle the biggest global and regional challenges of our time 2018/19 - 110,427 144,086 178,164 211,904
Reasons for Change in Appropriation

The International Development Cooperation appropriation is a new multi-year appropriation for the period 1 July 2018 to 30 June 2021. It replaces the International Agency Funding and International Development Assistance multi-year appropriations which expire on 30 June 2018.