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Norway's 2025 AID Budget

Writer's picture: Juliet MacDowellJuliet MacDowell

Updated: Nov 6, 2024

On October 7, 2024, the Norwegian government unveiled its 2025 state budget. The budget allocates NOK52.9 billion (US$4.8 billion) to Official Development Assistance, equating to 0.92% of Norway's Gross National Income. While short of Norway's 1% target, the government plans to increase contributions in future years.


Key Priorities and Adjustments in ODA

The 2025 budget emphasizes several strategic areas, with a focus on humanitarian aid, climate action, and global health. Despite maintaining overall stability, the budget introduces targeted adjustments in specific sectors:

  • Increased Investments:

    • Humanitarian Assistance: An additional NOK300 million (US$27 million) will support urgent humanitarian needs.

    • Climate Adaptation and Food Security: With rising climate challenges, the budget includes an increase of NOK380 million (US$35 million) to bolster resilience in affected regions.

    • Support for Palestine: Development assistance to Palestine sees a boost of NOK280 million (US$26 million), reflecting Norway’s commitment to addressing regional needs.

  • Notable Reductions:

    • Refugee Support Outside of Norway: This area faces a 22% decrease, aligning with a strategic shift to address more urgent needs domestically and globally.

    • Peace Efforts: Funding for peace-building initiatives is reduced by 6%, while support for civil society faces a 3.9% cut, reflecting a refocusing of priorities.


Responding to Crisis: Focus on Ukraine and Gaza

The Norwegian government has allocated substantial resources to crisis areas, particularly Ukraine, in response to ongoing conflicts. The Nansen Program for Ukraine is set for a significant increase, with funding rising from NOK75 billion (US$6.8 billion) to NOK134.5 billion (US$12.3 billion). Additionally, the program's timeline is extended from 2027 to 2030, underlining Norway's long-term support for Ukraine amidst its conflict with Russia.

In parallel, the budget addresses humanitarian needs in other crisis zones. It includes increased aid for Gaza, as the region continues to face severe humanitarian challenges, as well as support for Sudan, where the situation remains dire due to escalating hunger and ongoing conflict.


Global Health: A Key Component with Adjusted Priorities

Norway’s commitment to global health remains a core aspect of the 2025 budget, despite a NOK103 million (US$9 million) decrease in health funding, bringing the total to NOK3.6 billion (US$327 million). The emphasis is on improving global health cooperation and preparedness, focusing on initiatives such as:

  • Infectious Disease Prevention: Strengthening global capabilities to combat infectious diseases and antimicrobial resistance.

  • Maternal and Child Health: A continued focus on reducing child and maternal mortality through targeted interventions.

  • Support for Sexual and Reproductive Health and Rights (SRHR): Expanding access and strengthening health services in this critical area.

  • Climate-Related Health Challenges: Addressing the increasing impact of climate change on health, including the spread of infectious diseases.


Norway's support for global health also includes a NOK20 million (US$2 million) reallocation to UNAIDS, demonstrating its commitment to long-term partnerships. For more details, you can review the press release from the Norwegian Agency for Development Cooperation.


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