The National Party's claim that foreign aid funding has increased by 26% since 2021 has been disputed by Foreign Minister Winston Peters. A spokesperson for Peters described the increase as "much more modest," around 10% when adjusted for inflation. National, however, is sticking with its unadjusted figure of 26%, stating that foreign aid spending rose from $777 million in 2021 to $982 million annually from 2024 to 2027.
National proposes redirecting foreign aid savings to fund $604 million for new medicines, while ACT suggests cutting aid to 2017 levels, excluding Ukraine support, to save around $238 million annually. Peters dismissed these plans as "desperate" and "training wheel stuff," warning that such cuts would weaken New Zealand's international influence.
A spokesperson for Peters explained that two-thirds of New Zealand's aid spending is focused on the Pacific. A 10% cut in the overall aid budget, while protecting Pacific funding, would require a 30% reduction in aid outside the Pacific. This would significantly impact humanitarian funding, including support for Ukraine and the Israel-Hamas conflict.
The Ministry of Foreign Affairs and Trade (MFAT) emphasized the importance of maintaining international spending to protect New Zealand's security and economic interests. The IDC budget, adjusted for inflation, increased by 10.1% from 2020 to 2026, but as a proportion of overall government spending, it has remained unchanged since 2021.