Chair of the parliamentary budget committee, Vigdís Hauksdóttir, told RÚV this morning that the government is discussing cutting aid to developing countries by hundreds of millions of ISK, and lowering child allowances and cuts to the interest rate for families with young children by ISK 600 million (USD 5.1 million, EUR 3.7 million).
Alþingi, the Icelandic parliament. Photo copyright Icelandic Photo Agency.
The state budget would remain the same, about ISK 500 million (USD 4.3 million, EUR 3.1 million) in surplus, but the funds which would have gone to development cooperation and child allowances would instead be spent on domestic health care, already one third of the state budget.
When asked about cutting aid to developing countries, Vigdís replied: “I mean, there were elections in the spring and it would be unusual for the current government to follow the policies of the former government. We have different policies.”