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Estimates of appropriations

Vote Official Development Assistance - External Sector - Estimates 2019/20

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 2019/20 financial year covering the following:

  • a total of $82 million for Management of New Zealand's International Development Cooperation, and
  • a total of $740 million for delivering International Development Cooperation.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections

Annual Appropriations and Forecast Permanent Appropriations

  2018/19 2019/20
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.
73,239 73,239 82,357

Total Departmental Output Expenses

73,239 73,239 82,357

Total Annual Appropriations and Forecast Permanent Appropriations

73,239 73,239 82,357

Multi-Year Appropriations

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

Non-Departmental Other Expenses

   

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 2017/18 -
Adjustments for 2018/19 33,817
Adjusted Appropriation 2,220,535
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 697,311
Estimate for 2019/20 739,815
Estimated Appropriation Remaining 783,409

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations

  2018/19 2019/20
  Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 73,239 73,239 82,357
Total Forecast MYA Non-Departmental Other Expenses 697,311 697,311 739,815

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations

770,550 770,550 822,172

Supporting Information

Part 1 - Vote as a Whole

1.1 - New Policy Initiatives

Policy Initiative Appropriation 2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
Reprioritisation of Funding - Forecast Departmental Underspends

Management of New Zealand's International Development Cooperation

(2,042) (745) (745) (745) (958)
  Departmental Output Expense          
Increasing New Zealand's Investment to Deliver on the Pacific Reset and to Demonstrate Global Leadership

Management of New Zealand's International Development Cooperation

- 1,098 2,090 2,590 6,756
  Departmental Output Expense          
 

International Development Cooperation

- 10,160 19,342 23,971 62,541
  Non-Departmental Other Expense          

Total Initiatives

 

(2,042)

10,513

20,687

25,816

68,339

1.2 - Trends in the Vote

Summary of Financial Activity
  2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
  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 55,141 58,079 61,676 63,959 73,239 73,239 82,357 - 82,357 85,578 89,722 93,675
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 513,016 533,992 530,543 643,037 697,311 697,311 - 739,815 739,815 783,409 821,778 860,348
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

568,157 592,071 592,219 706,996 770,550 770,550 82,357 739,815 822,172 868,987 911,500 954,023

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 320 660 1,209 1,908 400 400 N/A 400 400 400 400 400
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

320 660 1,209 1,908 400 400 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 Annual Appropriations and Forecast Permanent Appropriations and Multi-Year 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 the prior year information reported in last year's Summary of Financial Activity table.

1.3 - Analysis of Significant Trends

Total Vote: All Appropriations

Figure 1-Vote trends in actual expenses and capital expenditure by appropriation type

Figure 1 - Vote trends in actual expenses and capital expenditure by appropriation type

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 $568.157 million in 2014/15 to $822.172 million in 2019/20, an increase of $254.015 million. Of this, $226.799 million relates to an increase in non-departmental expenditure, while the departmental output expense increase is $27.216 million.

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

Departmental Output Expenses

From the 2015/16 financial year there are progressive annual increases in departmental output expenses reflecting additional funding, expected to increase from actual expenditure of $58.079 million in 2015/16 to $93.675 million in 2022/23. These increases are driven primarily by the following three 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 and each of the outyears
  • 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 each of the outyears, and
  • funding increases from the new initiatives package approved in Budget 2019 for the management of the International Development Cooperation programme associated with the new funding for "Increasing New Zealand's Investment to Deliver on the Pacific Reset and to Demonstrate Global Leadership" totalling $1.098 million in 2019/20, $2.090 million in 2020/21, $2.590 million in 2021/22 and $6.756 million in 2022/23 and each of the outyears.
Non-Departmental Other Expenses

This is the second year of the multi-year appropriation (International Development Cooperation) approved for the three-year period 2018/19 to 2020/21 and totalling $2,186.718 million.

The appropriation will increase to $2,220.535 million, including a total of $29.502 million in new funding from the new initiatives package for "Increasing New Zealand's Investment to Deliver on the Pacific Reset and to Demonstrate Global Leadership" approved in Budget 2019, together with $4.315 million of unexpended 2017/18 year-end balances from previous expiring multi-year appropriations. The additional funding approved in Budget 2019 is projected to increase New Zealand's Official Development Assistance as a percentage of Gross National Income to 0.28%.

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
  2018/19 2019/20
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 73,239 73,239 82,357
Revenue from the Crown 73,144 73,144 82,262
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
  2018/19 2019/20
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% 100% 100%

Amount and percentage of Crown ODA resources spent on the Pacific

60% for the triennium (+/- 5% for any given year) $399.17m; 57.24% 60% for the triennium (+/- 5% for any given year)

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

Increasing trend $67.92m; 8.72% Increasing trend

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

Increasing trend $21.91m; 3.14% Increasing trend

Amount and percentage of Crown ODA resources spent on Aid for Trade

At least 20% of ODA $158.09m; 22.67% At least 20% of ODA

Amount and percentage of Crown ODA resources spent on core contributions to multilateral agencies

15% of annual spend (+/- 5% for any given year) $96.24m; 13.80% 15% of annual spend (+/- 5% for any given year)

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

10-12% of annual spend $78.79m; 11.30% 10-12% of annual spend

Amount and percentage of Crown ODA resources spent on strengthening Pacific statistics

Increasing trend $0.74m; 0.11% Increasing trend

Amount and percentage of Crown ODA resources allocated to humanitarian activities

Increasing trend $27.92m; 4.00% Standard dependent on need

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 3)

Increasing trend Increasing trend 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 (see Note 4)

Increasing trend 2018 Index: 31 out of 100 Increasing trend

Policy Advice

     

Policy submissions produced for Ministers under this output expense class

150-200 200 150-200

Assessment of Performance of the quality of the agency's policy advice papers

7.5 out of 10 7.5 See Note 5

Satisfaction of the portfolio Minister with the policy advice service

4 or above on a 5 point scale 4 or above See Note 6

Ministerial Services

     

Number of Ministerial letters prepared

60-90 120 60-90

Number of Parliamentary Question responses provided

New measure 25 20-50

Number of Official Information Act request (OIA) responses provided

20-50 20 20-50

Percentage of Ministerial correspondence completed within 15 working days

New measure 80% 90%

Percentage of Ministry OIA requests responded to within statutory timeframes (see Note 7)

90% 90% 90%

Percentage of Ministerial OIA request replies completed five days prior to the statutory time limit, unless otherwise agreed (see Note 7)

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 7)

25 days 25 days 25 days

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

Note 3 - 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 4 - Due to a methodology change after 2016, results are not directly comparable with previous years.

Note 5 - The Standard will be identified based on the refreshed Policy Quality Framework and updated in the Supplementary Estimates. All agencies are required to use the refreshed Policy Quality Framework from 2019/20 to assess the quality of their policy advice papers. The Policy Quality Framework is currently being refreshed. The refreshed Framework will be released before 30 June 2019.

Note 6 - The Standard will be identified based on the revised Ministerial Satisfaction Survey and updated in the Supplementary Estimates. All agencies are required to use the refined Ministerial Satisfaction Survey from 2019/20 to assess ministerial satisfaction with the policy service. The survey is currently under review and the refined survey and guidance will be released before 30 June 2019.

Note 7 - 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 Strategic Intentions, 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
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Increasing New Zealand's Investment to Deliver on the Pacific Reset and to Demonstrate Global Leadership 2019/20 - 1,098 2,090 2,590 6,756
Reprioritisation of Funding - Forecast Departmental Underspends 2019/20 (2,042) (745) (745) (745) (958)
Increasing our aid to tackle the biggest global and regional challenges of our time 2018/19 11,930 15,566 19,248 22,892 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 $9.118 million to $82.357 million for 2019/20, due to:

  • an increase of $3.636 million from the new initiatives package approved in Budget 2018 for the management of the International Development Cooperation programme associated with the new initiative funding for "Increasing our aid to tackle the biggest global and regional challenges of our time"
  • an increase of $2.400 million resulting from the retention of an underspend from the 2018/19 financial year to enable the establishment of the Pacific Enabling Fund, which will support New Zealand's engagement with Pacific partners on a diverse range of activities that sit outside the formal aid funding arrangements
  • an increase of $1.297 million resulting from lower Budget 2019 initiative Reprioritisation of Funding - Forecast Departmental Underspends in 2019/20 compared to 2018/19
  • an increase of $1.098 million from the new initiatives package approved in Budget 2019 for the management of the International Development Cooperation programme associated with the new initiative funding for "Increasing New Zealand's Investment to Deliver on the Pacific Reset and to Demonstrate Global Leadership"
  • an increase of $506,000 resulting from the retention of an underspend from the 2018/19 financial year to meet the operating costs of the investigation and design phases of capital projects to be advanced in the 2019/20 financial year, and
  • an increase of $301,000 resulting from foreign currency exchange rate and overseas inflation movements.

The increases are partially offset by:

  • a one-off expense transfer of $120,000 from 2017/18 to progress the removal of asbestos from Ministry buildings at overseas posts, particularly in the Pacific, in the 2018/19 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 2017/18 -
Adjustments for 2018/19 33,817
Adjusted Appropriation 2,220,535
Actual to 2017/18 Year End -
Estimated Actual for 2018/19 697,311
Estimate for 2019/20 739,815
Estimated Appropriation Remaining 783,409
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
  2018/19 2019/20
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

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

     

Wellbeing

     

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

Maintain or increase number with improving trend Maintain or increase number with improving trend 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)

Maintain or increase number with improving trend Maintain or increase number with improving trend 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)

Maintain or improve trend Maintain or improve trend 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)

Maintain or increase number with improving trend Maintain or increase number with improving trend Maintain or increase number with improving trend

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

Maintain or increase number with improving trend 7 of 10 improving Maintain or increase number with improving trend

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

Maintain or increase number with improving trend Maintain or increase number with improving trend 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 100% (4 out of 4 key tuna stocks) Maintain

Economy and governance

     

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

Maintain or increase number with improving trend Maintain or increase number with improving trend Maintain or increase number with improving trend

Governance and effectiveness index (Rank) in bilateral partner countries

Increasing average rank Increasing average rank Increasing average rank

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

     

Wellbeing

     

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

Maintain or increase number with improving trend Insufficient data available for trend analysis Maintain or increase number with improving trend

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

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

People that complete tertiary or vocational training scholarships

>90% of people who were awarded scholarships >90% of people who were awarded scholarships >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 improve trend Insufficient data available for trend analysis 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)

Maintain or increase number with improving trend Maintain or increase number with improving trend 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

Maintain or improve trend Maintain or improve trend Maintain or improve trend

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

Maintain or improve trend Maintain or improve trend Maintain or improve trend

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

90% of respondents show improvement 90% of respondents show improvement 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 improve trend Maintain or improve trend 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 Standard dependent on need Standard dependent on need

Quality

     

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

Baseline to be established Baseline to be established Baseline to be established

Commitment to Development Index score

Improve trend 2018 Index score: 5.09 Improve trend

Note 1 - To be disaggregated by our bilateral partners in Pacific, and Timor Leste.

Note 2 - This is a Sustainable Development Goal Indicator. 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 improvement".

Note 4 - Standard in full is "Maintain: 4 out of 4 key fish stocks assessed as being above sustainable biological limits as at end 2018".

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
2018/19
Final Budgeted
$000
2019/20
Budget
$000
2020/21
Estimated
$000
2021/22
Estimated
$000
2022/23
Estimated
$000

Current Government

           
Increasing New Zealand's Investment to Deliver on the Pacific Reset and to Demonstrate Global Leadership 2019/20 - 10,160 19,342 23,971 62,541
Increasing our aid to tackle the biggest global and regional challenges of our time 2018/19 110,427 144,086 178,164 211,904 211,904

 

Last updated: 
Thursday, 30 May 2019