Save the Children International’s Position on Budget Support as an Aid Modality

Save the Children believes that budget support remains an important aid modality, if the conditions to use it well exist. This paper outlines the following five “red lines” necessary for budget support to play a valuable role as an aid modality: 1.The choice of the package of aid modalities used has to be context-driven; 2. Budget support must be results-based and geared to achieving the objectives set out in the national development plan and poverty reduction strategy; 3. Accountability and transparency should be enhanced for budget support to be an effective aid modality; 4. Monitoring and evaluation of budget support should be enhanced by strengthening indicators in the national and sectoral plans and include a focus on results for children; and 5. Balance between different aid modalities requires strengthened coordination and dialogue between the donors, and between the donors and the recipient
countries.