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May 14th, 2013 
Peter Nolan
Updated
The Australian budget makes cuts to spending in the Department of Foreign Affairs.
But it offers more money to help the Solomon Islands govern itself after an Australian assistance mission withdraws this year.
Labor government Treasurer Wayne Swan revealed an $18 billion deficit when he delivered the budget for 2013-2014.
Delivering his sixth budget, Mr Swan promised Australia will be out of the red in two years time.
Huge pressure
He said challenging global economic conditions and a high Australian dollar have put huge pressure on the budget.
The Treasurer has made $43 billion in savings to send the budget to balance in two years and to a surplus a year later.
The budget focus is on delivering over a 10-year period the two key reforms: the national disability insurance scheme, DisabilityCare, and the national school reforms.
Wayne Swan says he is not putting an axe to the economy.
Foreign aid targets, as forecast, have been delayed.
Savings worth $88 million over six years are being found in the Australian Department of Foreign Affairs through reducing Canberra-based staff and closing the Budapest embassy.
Almost half a billion dollars is going towards the transition of the Regional Assistance Mission to Solomon Islands, RAMSI.
Australian Defence personnel are still on track to pull out later this year.
But the new money will go to improve Solomon Islands’ governance and financial management.
Topics:
budget,
government-and-politics,
business-economics-and-finance,
international-aid-and-trade,
solomon-islands,
australia,
pacific
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Source Article from http://www.abc.net.au/news/2013-05-14/an-solomons27-budget-benefit/4689824
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