Skip to content

Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

organised by ODI

Does General Budget Support Work? Evidence from Tanzania

Source: ODI

The paper's main findings are:
• In Tanzania, General Budget Support is provided by 14 donors and together with HIPC relief contributes 20% of public expenditure. Despite this, however, GBS is not yet a dominant aid modality.
• The immediate effects of the GBS programme have been strongly positive, but its role has been to facilitate a nationally-driven reform process; domestic revenues have grown even faster than aid.
• GBS has been associated with a large growth in government discretionary spending and a major expansion in health and education services. However:
i. There are few signs of improved efficiency of public spending or of long-term obstacles to service quality being addressed.
ii. The ‘challenge function’ in the budget process remains weak, mainly for political but also for more technical reasons.
iii. The expected improvements in intra-government incentives and democratic accountability are not yet apparent.
• The scope for change in these respects has been limited by the fact that 80% of development spending is still funded by donor projects.
• Outcomes have improved remarkably in respect of macroeconomic stability, investment and growth, while the negative macroeconomic effects of increased aid flows appear manageable.
• Outcome improvements are otherwise rather mixed, with large questions about service quality, and significant legal changes that are too recent to have yielded results.
• Poverty impacts are uncertain for the last half decade, the most relevant period, because there has been no household survey since 2001.
• The unevenness of growth and service-delivery improvements give reasons for caution about future poverty trends.
• In summary, GBS in Tanzania has not had all the positive effects expected of it, some of which are necessarily long-term. But the gains that have been made are important and would not have been so effectively facilitated by any other aid modality.

Click here to read the full paper



Log In or Join

Resource Categories

Size of tags indicates the number of resources
Absorption Accountability Africa Aid Architecture Aid Architecture Aid effectiveness Aid linkages Aid modalities Aid organisations All regions Asia Pacific Bilateral Donors Budget Support By Region Capacity Development Conditionality Corruption CSOs Debt Relief Domestic Resource Mobilisation Donor Coordination Mechanisms Economic Growth Education Effects of aid Emergencies Environment Europe Food Aid Gender Good Humanitarian Donorship Governance Harmonisation & Alignment Health Hot Topics Humanitarian Aid Quality Institutions Latest trends Latin America and Caribbean Macro impacts/Dutch Disease MDGs Middle East Multilateral and International (governmental) Organisations National Policy Frameworks/PRSs Natural Disasters NGOs Ownership Productive Sectors Public Expenditure Management/Budget Sector Programme based approaches Technical Assistance Trade Vertical Programmes/Global Initiatives Workshops

Recent Forum Posts

  • The Paris Declaration is Gender Blind
  • The urgent need for transparency and accountability
  • Your Support is needed in Egypt
  • Independent People's Tribunal on the World Bank Group
  • South and the future of the world

Suggest a Resource

If you would like to suggest a resource for the Forum on the Future of Aid, please email

Navigation