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5.2 Ensuring that budget support funding reaches the local level

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Jorge Rodriguez Bilbao5 April 2017

Development partners are increasingly concerned that budget support modalities lack appropriate dialogue and accountability mechanisms related to the disbursement of funds to sub-national levels. There are recurrent problems with intergovernmental fiscal transfers, including a lack of predictability and transparency. In practice, this means that funding remains trapped at the central level and LAs are further disempowered to fulfil their mandate.

EU Delegations should first understand the fiscal transfer flow arrangements that are supposed to ensure that the central government’s commitments will be fulfilled:

Fiscal transfer flow arrangement

EU Delegations should then assess the main risks associated with each arrangement and identify mitigation measures to minimise those risks.

 

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