President Bush yesterday released his budget request for fiscal year 2007, seeking a sizable increase in defense spending (mainly for equipment and weapons systems) while cutting the budgets of two-thirds of federal agencies. The picture for spending on development is a mixed one. Not surprisingly, the President calls for increased spending on his signature foreign aid programs, the Millennium Challenge Account and PEPFAR (the President’s Emergency Plan for Aid Relief). Accounts for narcotics control, peacekeeping, and educational and cultural programs – not considered official development assistance – also would see significant increases. What is arousing concern in development and aid circles, however, are the proposed cuts to "core" development accounts such as development assistance (15% reduction) and child survival and health (13% reduction). Today’s FT notes that, other than states that qualify for MCA funding, it’s the frontline states in the war on terror – Afghanistan, Pakistan, and Iraq – that stand to gain the most aid in 2007. CGD analysis from 2005 showed how dramatically assistance for frontline states has increased since 9/11.
