DFID’s steps to reduce its aid commitment

May 7, 2014

I am glad to hear that the Department for Foreign and International Development is still making sure that taxpayers’ money is being used as effectively as possible. Furthermore, the Department is making efforts to steadily reduce its aid commitment to those countries which it assists currently.

As part of its work to assist such countries, the Department is paying for HMRC officials to advise foreign governments on the ways to collect tax more successively. Obviously, increased revenue for these foreign countries will allow for the development of local infrastructure, which over time, will gradually improve the lives of those living there. Likewise, DFID is also providing business and legislative support to these countries. This should provide for the creation of an effective framework under which each country’s government will be able to operate more efficiently.

Interestingly, less than 2% of DFID’s total budget is now set aside for general budget support to foreign governments. If DFID’s work to assist with each country’s infrastructure development is successful, this figure will be further reduced. Significantly, where DFID has to award contracts, more than 90% of these contracts by value, are being awarded to UK companies.

It is good news that DFID is taking decisive steps to reduce its aid commitment.