The Danish government is increasing its developmental aid budget for the second time in a year, said reports reaching here from Copenhagen on Monday.

The government's pledge to maintain developmental aid levels at 0.8 percent of GDP combined with continued economic growth has resulted in an additional 500 million Danish krone (89 million U.S. dollars) being earmarked for 2006, Copenhagen Post reported.

The increase is the second time this year that the government has increased the amount.

In July, Danida, the Danish International Development Agency, received a 300 million Danish krone increase. Its current 13.3 billion Danish krone is the highest level since 2001.

The amount is projected to increase again to 13.9 billion Danish krone in 2007, the report said.

The minister of development co-operation, Ulla Toernas, said the 2006 and 2007 supplemental increases will primarily be used towards debt relief.

Source: Xinhua