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Uganda's Economic ReformsInsider Accounts$
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Florence Kuteesa, Emmanuel Tumusiime-Mutebile, Alan Whitworth, and Tim Williamson

Print publication date: 2009

Print ISBN-13: 9780199556229

Published to Oxford Scholarship Online: February 2010

DOI: 10.1093/acprof:oso/9780199556229.001.0001

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Aligning Aid with Government Fiscal Objectives

Aligning Aid with Government Fiscal Objectives

Chapter:
(p.277) 13 Aligning Aid with Government Fiscal Objectives
Source:
Uganda's Economic Reforms
Author(s):

Martin Brownbridge

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199556229.003.0013

This chapter evaluates efforts by the government to encourage donors to shift their aid into budget support and to ensure that aid flows were consistent with the government's macroeconomic objectives for fiscal policy and its strategic expenditure priorities. Aid to Uganda rose sharply in the second half of the 1990s, funding a major expansion of public expenditure. This was accompanied by a shift in aid modalities, from projects to budget support, in line with government preferences. Uganda was in the forefront of the rapid growth in budget support, which has been one of the most profound developments in the aid business in recent years. The chapter examines the key institutional reforms intended to encourage the shift towards budget support and looks at some of the problems encountered with aligning budget support with the Medium Term Expenditure Framework. It also examines the reasons for government's strategic objective of reducing the budget's dependence on donor aid.

Keywords:   aid, budget support, fiscal policy, projects

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