How the SBS contribute to the country
The benefit of the partner country is twofold:
- implementation of reforms and modern policies contribute to its development in a particular sector and
- the state budget receives direct contributions
As a general objective, EU budget support aims at strengthening the partnerships with partner countries, to promote sustainable development, eradicate poverty, reduce inequalities, and consolidate peace and democracy.
EU sector budget support is tailored to the sectoral development needs of our partner countries. Specific objectives therefore vary but are always in line with beneficiary countries’ sectoral policies, priorities, and objectives, and consistent with the EU’s external action policy.
The country thus benefits twice: implementation of reforms and modern policies contribute to its development in a particular sector and the state budget receives direct contributions provided as a ‘success fee’ after the successful implementation of particular reform measures is reported.
Sector budget support also helps partner countries mobilise domestic revenue and depend less on external aid. As it fosters transparency and good governance, budget support contributes to the fight against corruption and the creation of a favorable climate for private investments in EU partner countries.
Budget support encourages accountable and effective public administration. Budget support addresses corruption and fraud through:
- assistance to audit and anti-corruption institutions or judicial bodies;
- strengthened political/policy dialogue on transparency and oversight functions;
- reforms to fix systemic weaknesses favoring corruption in revenue administration, spending and procurement processes or in service delivery;
- support for civil society organisations to enable participation and oversight in the budgetary and policy process.