Direct budget support

Direct budget support represents just one of several means of achieving poverty reduction. The Norwegian Government has stated in its Action Plan for Combating Poverty in the South towards 2015 - 'Fighting Poverty' (March 2002) - that Norway intends continuing the process of shifting project assistance to various types of budget and programme support. Public financial management will remain an area of focus.

This document reviews some of the key issues related to direct budget support and public financial management. In addition, some advice is being provided on how NORAD ought to handle and deal with direct budget support.