Tale of two budgets

Feb 24th, 2011 1:27 PM UTC
By Larry Nowels

Over the past 10 days, we have been absorbing and reacting to developments around not just one, but two budgets that significantly effect global poverty reduction programs. After looking at both, however, you might conclude that they were headed in opposite directions, having far-reaching, but far different impacts on the lives of the world’s poor. And you would be correct.

Last week, the House debated an appropriations measure that would finalize US spending for FY2011 -– that’s this year, nearly half of which has gone by. As approved, the House bill cuts the International Affairs budget by 19 percent from FY2010 amounts with serious consequences for poverty programs. Resources for the Global Fund to Fight AIDS, TB and Malaria are slashed by $450 million and global development assistance is cut 30 percent below last year’s amount, placing the administration’s Feed the Future Initiative in great jeopardy.

Humanitarian aid supporting victims of emergencies and disasters around the world shrink by over 41 percent with food assistance falling to levels of a decade ago. For the Bush Administration’s signature program, the Millennium Challenge Corporation, the $790 million appropriation is 29 percent below last year and the smallest budget the MCC has ever received.

In contrast, President Obama submitted his FY2012 budget to Congress on February 14, proposing a modest, but strategically targeted request for International Affairs next year. While the proposal represents a small 3 percent increase over FY2010 levels and provides substantial increases for operations and aid to the front line states of Afghanistan, Pakistan and Iraq, it also recommends important increases for poverty-focused activities and maintains US commitments support global challenges facing all nations. American support for the Global Fund would grow by 24 percent, the Global Health Initiative would increase by 11 percent, and resources for Feed the Future would put the initiative back on track.

Attention on the FY2011 budget now shifts to the Senate, which needs to take some action prior to the March 4 expiration of the existing continuing resolution (CR). Prospects are high for some sort of short term extension of the CR and the debate will continue. In the meantime, the President’s FY2012 request will take a back seat to these efforts to finalize FY2011 spending and to restore the crippling cuts to global poverty programs passed by the House. Look for frequent updates on the “Tale of two budgets.”

TAGS: Development Assistance, FY2011 US budget, FY2012 US budget