How is Canadian ODA changing?

According to the OECD, the 9% increase in Canada’s ODA between 2020 and 2021 was mainly the result of funding targeting the COVID-19 pandemic and increases in climate finance. Canada's ODA increased again in 2022 to US$7.8 billion, largely due to support to Ukraine (some in the form of humanitarian assistance), increased costs for in-donor refugees, as well as higher contributions to international organizations. ODA held nearly steady in 2023, but is predicted to fall in 2024 to pre-COVID levels.

The Liberal Party government has repeatedly promised to increase Canada’s international development assistance every year until 2030 to realize the SDGs. Budget 2024 breaks that promise, as Canada continues to decrease its ODA from FY2022-23, when Canada spent a record high of CAD8.1 billion ( US$6.2 billion) on international development assistance.

Given the global context, the war in Ukraine and global health security will likely continue to dominate Canada’s foreign policy and development spending. Canada's Liberal government will also continue to focus development spending on feminist development, in line with its FIAP. Furthermore, Canada announced its inaugural Indo-Pacific Strategy in November 2022, which is part of an effort to diversify diplomatic, trade, and development relations in the region, particularly in the face of heightened tensions between China and the West. As part of the strategy launch, the Government of Canada announced roughly CAD960 million ( US$716 million) in development spending in the region. Canada provided a total of CAD1.6 billion ( US$1.2 billion) in development assistance to the Indo-Pacific region in 2021 to 2022, and continues to make regular new development commitments as part of this strategy.

According to Global Affairs Canada’s 2024-2025 Departmental Plan, Canada’s spending on 'Development, Peace and Security Programming' is continuing to decrease from its record high of CAD6.4 billion ( US$4.9 billion) in FY2022/23, to CAD5.3 billion ( US$4.1 billion) in FY2023/24, CAD5.6 billion (US$4.3 billion) in FY2024/25, CAD4.9 billion ( US$3.7 billion) in FY2025/26, and CAD4.4 billion ( US$3.4 billion) in FY2026/27.

However, the government vowed to offset these decreases by increasing spending in other priority areas, such as an additional CAD100 million ( US$77 million) to support the Global Fund and new funding for Ukraine. On May 12, 2025, Canadian development leaders welcomed the Liberal Party’s pledge to maintain at least US$800 million annually for international humanitarian assistance, emphasizing the need for sustained, strategic assistance, particularly to support vulnerable women and girls.