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Overseas Aid

Volume 459: debated on Tuesday 1 May 2007

To ask the Secretary of State for International Development what proportion of bilateral assistance to (a) Malawi, (b) Zambia, (c) Ghana, (d) Uganda, (e) Sierra Leone, (f) Rwanda, (g) Vietnam, (h) Pakistan, (i) Nepal and (j) East Timor was delivered by direct budget support in 2005-06; and what projections he has made for future delivery of direct budget support as a proportion of overall bilateral aid up to 2009-10. (131310)

Poverty Reduction Budget Support (PRBS) is DFID's term for aid provided to a partner government to support that government's poverty reduction programmes which is spent using the government's own financial management, procurement and accountability systems. PRBS is also commonly known as direct budget support.

We deliver PRBS in many different ways in different countries, depending on the objectives we are trying to achieve and the particular risks we face.

General budget support is provided to the government to support implementation of the overall poverty reduction strategy. It is allocated and spent by the government across all sectors to achieve overall progress against multiple poverty reduction objectives. General budget support has the advantage of supporting the government's overall policies for addressing poverty and reinforces the role of the Ministry of Finance in allocating resources across government in the most effective way.

Sector budget support is normally provided to the government to support implementation of a particular sector strategy and achieve particular improvements in for example health, education or road infrastructure. In some countries this can be a more effective way of achieving development in particular sectors. Sector budget support can also be a more effective way of delivering aid where there are high fiduciary or political risks—in some countries we track our resources to the sector or sub-sector to ensure that they are spent in that sector.

The proportion of DFID’s bilateral assistance delivered as PRBS in 2005-06 and projections up to 2007-08 for each country are given in the following table. Projections are based on PRBS commitments DFID has made to partner governments together with the current allocation of DFID bilateral aid to the relevant countries. Projections beyond 2007-08 will not be available until the comprehensive spending review is concluded later this year. East Timor did not receive any PRBS from DFID in financial year 2005-06 and is not projected to receive any in following years.

Level of PRBS (£ million)

Proportion of DFID aid framework (Percentage)

Status

(a) Malawi

2005-06

34.3

49

Actuals

2006-07

33.2

53

Projection

2007-08

37.0

53

Projection

(b) Zambia

2005-06

20.7

44

Actuals

2006-07

26.2

64

Projection

2007-08

25.0

63

Projection

(c) Ghana

2005-06

47.7

56

Actuals

2006-07

53.6

76

Projection

2007-08

57.7

82

Projection

(d) Uganda

2005-06

30.0

45

Actuals

2006-07

40.0

53

Projection

2007-08

35.0

50

Projection

(e) Sierra Leone

2005-06

15.0

47

Actuals

2006-07

12.5

40

Projection

2007-08

1

1

(f) Rwanda

2005-06

256.8

283

Actuals

2006-07

22.6

215

Projection

2007-08

35.0

76

Projection

(g) Vietnam

2005-06

34.0

61

Actuals

2006-07

34.0

68

Projection

2007-08

31.8

64

Projection

(h) Pakistan

2005-06

42.5

59

Actuals

2006-07

62.5

69

Projection

2007-08

47.5

47

Projection

(i) Nepal

2005-06

8.7

26

Actuals

2006-07

4.9

13

Projection

2007-08

9.0

27

Projection

1 Not available—pending decision in July. 2 Reflects additional tranche of General Budget Support paid in 2005-06 and resulting adjustment in 2006-07 figures.

Further information on Poverty Reduction Budget Support will be published in the Departmental Report in May.

To ask the Secretary of State for International Development what proportion of bilateral assistance to (a) Kenya, (b) Mozambique, (c) India and (d) Afghanistan was delivered by direct budget support in 2005-06; and what projections he has made for future delivery of direct budget support as a proportion of overall bilateral aid up to 2009-10. (131407)

Poverty reduction budget support (PRBS) is DFID's term for aid provided to a partner government to support that government's poverty reduction programmes, which is spent using the government's own financial management, procurement and accountability systems. PRBS is also commonly known as direct budget support.

We deliver PRBS in many different ways in different countries, depending on the objectives we are trying to achieve and the particular risks we face.

General budget support is provided to the government to support implementation of the overall poverty reduction strategy. It is allocated and spent by the government across all sectors to achieve overall progress against multiple poverty reduction objectives. General budget support has the advantage of supporting the government's overall policies for addressing poverty and reinforces the role of the Ministry of Finance in allocating resources across government in the most effective way.

Sector budget support is normally provided to the government to support implementation of a particular sector strategy and achieve particular improvements in for example health, education or road infrastructure. In some countries this can be a more effective way of achieving development in particular sectors. Sector budget support can also be a more effective way of delivering aid where there are high fiduciary or political risks—in some countries we track our resources to the sector or sub-sector to ensure that they are spent in that sector.

Kenya and Afghanistan did not receive any PRBS from DFID in financial year 2005-06 and are not currently projected to receive any over the following financial years.

The proportion of DFID bilateral assistance delivered as PRBS in 2005-06 and projections up to 2007-8 for both Mozambique and India are given in the table. Projections are based on PRBS commitments DFID has made to partner governments together with the current allocation of DFID bilateral aid to the relevant countries. Projections beyond 2007-08 will not be available until the comprehensive spending review is concluded later this year.

(b) Mozambique

Level of PRBS (£ million)

Percentage of DFID aid framework

Status

2005-06

41.3

73

Actuals

2006-07

36.0

80

Projection

2007-08

41.0

68

Projection

(c) India

Level of PRBS (£ million)

Percentage of DFID aid framework

Status

2005-06

79.5

32

Actuals

2006-07

71.8

30

Projection

2007-08

83.0

31

Projection

Further information on poverty reduction budget support will be published in the departmental report in May.