Canada announced its 2011 Federal Budget on 22nd March. As part of a package of budget cuts aimed at balancing the budget by 2015-16, it was announced that the International Assistance Envelope (IAE) was to be remain capped at $5billion for an indefinite period.
The IAE is the principal fiscal source for Canadian ODA and this therefore means that ODA from Canada will also remain frozen at current levels. As the 2010 budget assumed 8% year-on-year increases in the IAE, the total amount of ODA cut from Canadian budget projections could be as high as $6.7billion if the freeze in ODA spending continues to 2015.
Assuming Canada’s economy continues to grow at the currently projected rate, ODA as a percentage of Canadian GDP will fall from its current level of 0.33% to 0.27% in 2015 if the freeze in the IAE continues until then.
See also the analysis published by the Canadian Council for International Co-operation (CCIC)
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