Budget support is an aid modality assisting partner countries in their reform efforts to move towards sustainable development and growth. ADE supports governments and development aid agencies throughout the programme cycle of design, implementation, monitoring and evaluation. This includes supporting eligibility assessment against the criteria of programme formulation, choice of SMART variable tranche indicators and the decision process for tranche releases, as well as evaluating the contribution of budget support programmes to development outcomes. Through this work, ADE contributes to strengthening country policy and public finance systems, as well as civil society participation in policy and budgetary processes.
Budget support is fully aligned with the principles of the aid effectiveness agenda. It is results-based, aligned with country policies and systems, links assistance to reforms and improves accountability. Budget support involves the transfer of financial resources to the Treasury which are then used through the partner country’s own public financial management systems. It also offers a valuable platform for dialogue with partner countries on policies and their financing; and provides capacity development in support of key institutions and reforms.
Key services include
- Providing methodological support such as guidance and tools facilitating the programming cycle of budget support programmes
- Supporting the design, implementation and monitoring of budget support programmes through technical assistance and training
- Evaluating the effects of budget support programmes through mid-term and end-term evaluations
Project examples
Guidance tools & training
- EC – Revising training modules on Budget Support (along the lines of the 2017 BS Guidelines)
- EC – Wide range of Budget Support training delivered over the years to EU HQ and EUD staff as well as to representatives of beneficiary governments
Evaluations
- EC – Mid-term evaluation of three budget support programmes in Niger (SBC II & SRBC and Education SRC) (2021)
- EC – Evaluation of EU’s Collect More Spend Better (ongoing)
- EC – Evaluation of EU State Building Contracts (2020)
- AfDB and EC – Wide range of strategic level evaluations where the portfolio is heavily made up of budget support programmes