The development cooperation is funded by appropriations under the state budget as well as by government loans and financial investments.
In 2018, Finland’s development cooperation appropriations total EUR 886 million and represent 0.38% of the gross national income (GNI). The appropriations are used to fund the official development assistance (ODA) administered by the Ministry and for other development cooperation activities.
The exclusive ODA budget item grew steadily between 2006 and 2015. For three years, Finland also directed the revenue from emission allowance auctions.
Since 2016, Finland has significantly reduced its exclusive ODA budget item. At the same time, Finland established a new budget item for development policy financial investments, which allows the introduction of new types of financing instruments. Their use is accompanied by a clear expectation that the investments will generate returns and pay themselves back. Financial investments supplement the exclusive ODA budget item, and they also help Finland to pursue its development policy objectives.