According to the National Audit Office the Department for International Development’s (DFID’s) use of budget support “is helping developing country governments to build their capacity and expand basic services. But, according to a report out today by the National Audit Office, evidence on whether budget support has yielded better value for money than other forms of aid is not conclusive. While budget support has some advantages compared to other forms of aid, it also carries significant risks which need to be better managed.”
On the ODI Blog on development issues, Nick Highton points out that “the problem is that by focusing narrowly on the risks of misappropriating GBS funds, the NAO report could risk fuelling calls for a return to old ways of working. That is, giving projectised aid to poor countries in ways that make limited use of government systems, only to find that in the long run the essential capacity needed to properly manage public finances fails to take hold.”
Filed under: Beyond WECA
