Budgeting for Poverty Reduction - Evaluation of Poverty Reduction Strategies in Latin America - 2005
Regional Report 2005
Health Division Document
This report examines to what degree the PRS objectives get translated in effective budget allocations. Implementation of the PRS approach continues to encounter problems in Bolivia, Honduras and Nicaragua and there are doubts that the PRS process will remain a credible framework for poverty reduction interventions. The link between the PRS and the budget system is weak, due to a general lack of results-orientation in the budgeting process and weaknesses in the overall fiscal management system. Countries have started improving budgeting systems as part of the PRS approach or as an independent initiative. The key message is that a more focused, but less comprehensive approach is needed to make credible steps forward and should be followed before embracing more sophisticated budgeting tools.