Australia's aid budget cuts are a win for the Pacific

The government delivered its annual budget on Tuesday, announcing that the country's foreign aid budget had been cut again.

The Australian National University's Stephen Howes said programmes in places like Pakistan, Nepal, Cambodia and Indonesia have been slashed by as much as half.

But he said the Pacific has been spared.

"The government's caught between these two conflicting objectives. On the one hand, it doesn't want to increase overall aid," he said.

Modest economic growth forecast for Nauru

In handing down the 2017/18 budget, Mr Adeang told Parliament it provides for $128.7 million in revenues and $128.6 million in expenditures.

He said Nauru’s development partners are expected to inject another $28.8 million during the year ahead.

The minister added that despite a downturn in the economy, the Government does not plan to introduce any new taxes to maintain current services or to fund 50th independence anniversary celebrations in 2018.