Canberra, July 6 (ANI): The Gillard government is to phase out foreign aid to economic giants India and China, but has planned to boost spending in Southeast Asia, the Pacific Islands, the Middle East and Africa.
Foreign Minister Kevin Rudd has announced the government's response to the first independent review of Australia's aid program in 15 years, accepting 38 of its 39 recommendations.
With the aid budget set to balloon to over eight billion dollars over the next five years, Rudd said Australia's nearest neighbours, Indonesia, Papua New Guinea and East Timor - would remain its top focus, News.com.au reports.
Australia also will increase its aid to developing nations in East Asia and South Asia, but China and India will no longer qualify.
"They are respectively the second and sixth largest economies in the world. Both have considerable economic capacity," Rudd said.
"And both have begun their own international development assistance programs," he added.
Australia may however, continue to provide some assistance to the countries through multilateral organizations and regional programs.
The government has pledged to analyze the aid program's progress every year and abolish programs that are not delivering. It has also agreed to five-yearly independent reviews. (ANI)
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