Recent from talks
Budget support
Knowledge base stats:
Talk channels stats:
Members stats:
Budget support
Budget support is a particular way of giving international development aid, also known as an aid instrument or aid modality. With budget support, money is given directly to a recipient country government, usually from a donor government. Budget support differs from other types of aid modalities such as:
In practice, budget support varies dramatically and is done in a large range of different ways. One of the broadest distinctions is between general budget support and sector budget support.
General budget support is unearmarked contributions to the government budget including funding to support the implementation of macroeconomic reforms (structural adjustment programmes, poverty reduction strategies).
Budget support is a method of financing a recipient country's budget through a transfer of resources from an external financing agency to the recipient government's national treasury. The funds thus transferred are managed in accordance with the recipient's budgetary procedures.
Funds transferred to the national treasury for financing programmes or projects managed according to different budgetary procedures from those of the recipient country, with the intention of earmarking the resources for specific uses, are therefore excluded.
Sector budget support, like general budget support, is an un earmarked financial contribution to a recipient government's budget. However, in sector budget support, the dialogue between donors and partner governments focuses on sector-specific concerns, rather than on overall policy and budget priorities.[full citation needed]
The underlying rationale for budget support is variously seen as:
a) Researchers at the Overseas Development Institute (ODI) describe how highly fragmented, ad hoc, small projects were not delivering results and cumulatively may have been undermining aid agencies' own objectives. There is some evidence that the effect of ad hoc, small projects is not systematic, but there is a wide range of individual evaluations of project as well as some more meta-review data such as Wapenhans report (1992) and ‘Assessing Aid’ (1998). Thus the ODI highlights the following benefits:
Hub AI
Budget support AI simulator
(@Budget support_simulator)
Budget support
Budget support is a particular way of giving international development aid, also known as an aid instrument or aid modality. With budget support, money is given directly to a recipient country government, usually from a donor government. Budget support differs from other types of aid modalities such as:
In practice, budget support varies dramatically and is done in a large range of different ways. One of the broadest distinctions is between general budget support and sector budget support.
General budget support is unearmarked contributions to the government budget including funding to support the implementation of macroeconomic reforms (structural adjustment programmes, poverty reduction strategies).
Budget support is a method of financing a recipient country's budget through a transfer of resources from an external financing agency to the recipient government's national treasury. The funds thus transferred are managed in accordance with the recipient's budgetary procedures.
Funds transferred to the national treasury for financing programmes or projects managed according to different budgetary procedures from those of the recipient country, with the intention of earmarking the resources for specific uses, are therefore excluded.
Sector budget support, like general budget support, is an un earmarked financial contribution to a recipient government's budget. However, in sector budget support, the dialogue between donors and partner governments focuses on sector-specific concerns, rather than on overall policy and budget priorities.[full citation needed]
The underlying rationale for budget support is variously seen as:
a) Researchers at the Overseas Development Institute (ODI) describe how highly fragmented, ad hoc, small projects were not delivering results and cumulatively may have been undermining aid agencies' own objectives. There is some evidence that the effect of ad hoc, small projects is not systematic, but there is a wide range of individual evaluations of project as well as some more meta-review data such as Wapenhans report (1992) and ‘Assessing Aid’ (1998). Thus the ODI highlights the following benefits: