Australia must recheck the way it handles foreign aid funds and if necessary, identify the proper channel for appropriate funnelling of money to recipient countries to ensure that the dollars were put into good use.

Earlier this week, Foreign Minister Kevin Rudd said that he intends to implement an independent review of AusAID's foreign funding activities, possibly to check on the efficiency of its system and to correct any glitch when identified.

The call for a five-month re-assessment came amidst mounting concerns on the ability of the Australian international aid body in managing its ballooning budget, which is mainly earmarked for developmental expenditures on specific countries.

The Coalition is upbeat on Mr Rudd's initiative as opposition foreign affairs spokeswoman Julie Bishop called the move very timely in determining if AusAID is competent enough at this stage to handle the country's bipartisan commitment, in light of the anticipated increase on its budget.

Ms Bishop said that for the next five years, AusAID's budget would have doubled its foreign aid budget and amidst its current grappling with budget management, "we need an inquiry to determine a way to effectively and efficiently manage our aid budget."

She said that the inquiry could bring forward fresh and helpful ideas that could re-calibrate the way Australia dispenses its foreign aid funding.

The Coalition, according to Ms Bishop, is looking for ways to effectively utilise the field experience of non-government organisations (NGO), where Australia's development initiatives could be channelled through these civic agencies for maximum efficiency.

Personally, Ms Bishop is gunning for the involvement not only of the recipient countries' government agencies but also of their private sectors with credible experience in developmental and civic works.

She pointed out that recipient countries have a wealth of able personalities that could prove crucial in guiding AusAID's ground activities on identified locations, adding that these people have "a great deal of experience of getting aid dollars to where it's most needed."