Budget Support

This virtual training deals with the EU Budget Support modality, in accordance with the 2017 budget support guidelines. The training explains how EU budget support operates (eligibility assessment, design of operations, policy dialogue, performance monitoring and disbursement).

EU budget support is a policy and result-based instrument. The success of countries’ policies is at the core of each budget support operation with the reforms and investments that they imply. Budget support strongly features policy dialogue which leads to increased policy influence.

The first performance incentive coming with budget support lies in the four criteria conditioning its provision: 1) a relevant and credible public policy; 2) stability-oriented macroeconomic policies; 3) progress in public finance management and revenue mobilisation; and 4) budget transparency and oversight. Results are further incentivised by performance tranches whose amounts are disbursed proportionally to the achievement of specific targets drawn from countries’ policies. By working through country systems and thereby strengthening them, EU budget support fosters partners’ capacities to sustain results. Budget support generally comes with a complementary component for dedicated technical assistance and capacity development for that purpose. It fosters domestic accountability around these results, supporting civil society organisations as allies for transparency.

These features make budget support a pivotal instrument for the success of the Global Gateway Investment Agenda. A better investment climate in countries constitutes the bedrock on which public and private investments can yield returns and benefit all, within a 360-degree approach encompassing institutional strengthening, regulatory aspects and economic governance at the core of the agenda. 

A prerequisite to this budget support class is having completed the 10-module e-learning course available on INTPA Academy (which should take 3-4 hours). The e-learning course introduces the main concepts and principles of EU budget support, which will not be presented in detail during this class. Link:  https://webgate.ec.europa.eu/intpa-academy/course/view.php?id=239.