Development Policy Centre Podcast

Stability amidst uncertainty: 2025 Australian aid budget analysis

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Sinopsis

In this episode of Devpolicy Talks, Amita Monterola speaks with Dr Cameron Hill and Honorary Professor Robin Davies about Australia's 2025-26 aid budget. The conversation reveals two competing narratives within the budget: Australia's repositioning in an uncertain global environment alongside its role as a stable and reliable partner during turbulent times.The analysis shows that despite rhetoric about reprioritisation, the budget largely maintains stability in allocations. The Pacific continues to receive the largest share at 42% of total aid, followed by Southeast Asia at 25%, with minimal changes from previous patterns. The governance sector remains the predominant focus, while health expenditure stays relatively low at 13% of the aid budget.Robin Davies provides concerning projections for global aid volumes, suggesting a potential decline of at least 25% in international aid by 2027. This reduction is driven primarily by significant cuts from three major donors: the United States, the United Kingdom and G