§ Mr. Wigley
asked the Minister for Overseas Development if he will publish an analysis of the cause, by element of the increase of £21 million, in section A1 of Civil Estimate Class II, 8 (Overseas Aid).
§ Mr. Prentice
This Supplementary Estimates' provision is required to meet an increase in the rate of encashment of contributions already pledged by the United Kingdom in the form of promissory notes to the International Development Association (IDA). The original provision of £48 million for the year was based on disbursement estimates received from the IDA in the autumn of 1974.
The increase of £21 million results from the following factors:
Total IDA expenditure is proceeding faster than expected, due to the effects of inflation on prices of goods and services purchased under IDA credits. More credits for general purpose capital goods have also been approved; these are disbursed more quickly than project credits.
As the United States exercised the option to postpone, for up to one year, payment of the first instalment of its contribution to the Fourth Replenishment of the IDA, there have been 9W earlier calls on the contributions of other members, including the United Kingdom. When the United States payment is made there will be a catching-up period when drawings against other countries' contributions will be reduced.