Facing the Development Challenges of the 21st Century: What Role for Budget Support?
Budget support offers direct financing to a country’s treasury to create more “fiscal space” for public programs. It has constituted some 14 percent of ODA on average, increasing to over 20 percent in times of crisis. No aid modality is more controversial. Critics argue that, without earmarking funds to individual projects, they can be stolen or diverted to unproductive uses, and that, unlike investment projects, budget support produces no “tangible” results.
Source: cgdev.org