How is the German ODA budget structured?

BMZ manages more than half of Germany’s ODA

Germany’s ODA is sourced from the budgets of different ministries. The largest share of total ODA comes from the Federal Ministry for Economic Cooperation and Development (BMZ) (51% in 2014). Another 22% is raised by Germany’s development bank KfW on capital markets. The Federal Foreign Office, which manages most of the funding for humanitarian assistance and for UN peace missions, accounts for 9% of ODA overall.

BMZ’s budget will be €8.5 billion (US$11.3 billion) in 2017, a 15% increase from 2016. Germany plans to increase its ODA by a total of €8.3 billion (US$11 billion) from 2016 to 2019.

The German budget provides relatively detailed information on funding channels but shows little detail on recipients and sectors

Compared to other donors, the German budget provides relatively detailed information on funding channels but shows little detail on recipients and sectors. This allows the government to make multi-year commitments to some items based on ‘commitment appropriations’, which implies that certain amounts may be taken out of future budgets to be committed or spent now. They are thus important for organizations seeking multi-year funding commitments. Breakdowns of bilateral cooperation by region and sector are provided to Parliament through so-called ‘confidential remarks’, which are not available to the public.

Germany’s multilateral spending is mostly comprised of assessed contributions to the European Development Fund (EDF) and multilateral development banks. They account for around 20% of the BMZ’s multilateral budget. These budget lines are fixed by legally binding, multi-year commitments and thus cannot be influenced. The remainders are voluntary contributions. Within this category, only the Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund) has an individual budget line with binding multi-year commitments from BMZ. For other multilateral organizations, there are no individual budget lines and contributions are included in the commitment appropriations, which need to be protected from year to year.

Overview: 2017 BMZ Budget millions millions US$
Bilateral Spending 4,124 5472
Financial cooperation 2,220 2,946
Technical cooperation 1,289 1710
Crisis response 500 663
Other contributions 115 152
Multilateral Spending 1,565 2,076
European Development Fund 822 1,090
Multilateral organizations related to climate change and biodiversity 254 337
The Global Fund to Fight AIDS, Tuberculosis and Malaria 230 305
UN organizations 193 256
World Food Programme 28 37
The Global Agriculture and Food Security Program 20 27
International Fund for Agricultural Development 18 24
Development Banks 924 1,225
World Bank Group 661 878
African Development Bank 190 252
Asian Development Bank 72 96
Cooperation w/ CSO's, private sector & others 987 1,310
Other committments 853 1,132
Tackling root causes of displacement 395 524
One World – No Hunger 220 292
International efforts to fight climate change 163 217
Stability and development in the MENA region 70 93
Other 5 6
Administrative and personnel expenses 88 116
Total spending 8,541 11,332

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