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Aid Spending Scaled Back to Pre-Pandemic Levels
The Canada foreign aid cuts announced in Tuesday’s budget mark a major shift in Ottawa’s global development policy.
Prime Minister Mark Carney’s government says it will align aid spending with pre-pandemic levels, but has not disclosed the exact figure for this year’s budget.
The plan outlines $2.7 billion in reductions over four years. These cuts will hit areas such as global health projects and international research institutions. Ottawa also plans to scale back support for the International Development Research Centre (IDRC), one of Canada’s most respected aid agencies.
According to the budget, “there will be reductions in global health funding, where Canada’s contribution has grown disproportionately relative to other economies.”
Impact on Development and Global Health
The government says the cuts will help “focus support on countries that need it most” while “leveraging innovative tools.”
However, officials have not identified which programs will face the biggest impact. Canada spent $6 billion on foreign aid last year and $12.3 billion overall on international assistance, including loans and refugee support. The reductions come as developing nations face debt crises and climate-related disasters, worsening global inequality.
At the same time, Ottawa is redirecting $138 million in Global Affairs Canada funding toward rebuilding Ukraine’s infrastructure under a “trade finance” initiative. The government says reconstruction could boost Canadian industries in engineering, energy, agriculture, health, and technology.
For further insights into Canada’s shifting global role, visit PhoenixQ today news.
Research Centre Faces Steep Funding Cuts
The IDRC will see progressive reductions, starting with $11.4 million this fiscal year and rising to $23.5 million annually within five years.
Currently, Parliament allocates $159.4 million to the agency, which supports global innovation and resilience research. During a House of Commons foreign affairs committee session on Oct. 28, Liberal MP Rob Oliphant called the IDRC “a world-class institution.” He emphasized its role in preventing humanitarian crises by funding research that strengthens food security and climate resilience.
Fellow MP Randeep Sarai agreed, calling the IDRC “our secret weapon” and citing its work on climate-resilient potatoes in the Philippines that improved livelihoods for rural families.
Global Reaction Ahead of G20 Summit
Prime Minister Mark Carney will attend the upcoming G20 Summit in Johannesburg, where South Africa plans to demand more aid spending. The host government recently warned of an “inequality emergency” threatening democracy and economic stability.
Observers say Canada’s aid cuts could weaken its influence at the summit and undermine its image as a leading donor nation.
The Canada foreign aid cuts have already sparked concern among humanitarian groups, who warn the reductions could reverse years of progress in global health and poverty reduction.
