LONDON, Nov 5: Britain is intensifying plans to make substantial cuts to its aid budget to India on the grounds that it is difficult to justify spending 280 million pounds a year in one of the world’s fastest developing economies.
Justine Greening, the international development minister, is working on the plans “as a matter of urgency” to ensure that Britain’s relations with India focus on trade rather than aid.
Greening, who discussed Britain’s annual 280 million pounds aid budget to Delhi with Indian officials at the World Bank recently, is due to visit the sub-continent soon.
Pranab Mukherjee, the finance minister, said in February that Delhi did not need British aid but had agreed to accept the aid under pressure from Britain. Andrew Mitchell, Greening’s predecessor, said the aid was justified because a larger number of people in India live in poverty than in sub-Saharan Africa.
Greening said: “I think that as the aid budget enables countries to develop — and as they move from aid-based to trade-based support — we must work to establish a transition package, and that is what I am discussing with the Indians.”
Her remarks came in response to a question from MP Steve Brine. Brine said: “I am incredibly proud that the government are standing by some of the world’s poorest people at a time when things are so difficult at home, but a number of my constituents are concerned when India, for instance, is reported as saying that it does not need or, indeed, want our money.”
Greening first outlined her thinking to the Conservative party conference shortly after her appointment to the international development post in the cabinet reshuffle.
By arrangement with the Guardian
