In a statement, Carr said ‘substantial write-downs to budget revenues’ were behind the decision to slow the increase in aid spending. Last month, Australian Prime Minister Julia Gillard revealed that a revenue slump had blown a $12bn hole in the government’s finances, and Treasurer Wayne Swan is expected to unveil fresh spending cuts in his annual Budget speech tomorrow.

Carr stressed that Australia remained committed to increasing its aid budget to 0.5% of GNI, and noted that spending on official development assistance would increase to a record $5.7% in 2013/14.

This increase of around $500m – or 9.6% – on the aid spend from 2012/13 would bring the aid budget to 0.37% of GNI, he said. Carr added that aid spending had increased by over 60% since the Labor Party came to office in 2007.

Carr also contrasted the increase with the 4% fall in aid spending recorded across the countries within the Organisation for Economic Co-operation and Development last year.

However, just last week, the OECD urged Australia to stick to its plans to reach the 0.5% target in 2016/17, claiming its strong economy and recent increases in aid spending meant the goal was achievable.

Carr said: ‘We have seen great progress towards the Millennium Development Goals in our region, and Australia remains committed to supporting these goals.’

To this end, the next four years will involve Australia providing over one million people in the Asia Pacific region with better access to food and improved nutrition, as well as supporting an additional 1.2 million children to attend school.

The Australian government also plans to increase access to maternal and child health services for a further 900,000 women, the minister added.