This study, undertaken with the OECD Environment Directorate, examines how multi-year budgetary processes work in practice in both high income OECD countries ( Australia and the Netherlands) and in aid-receiving countries (Armenia, South Africa and Uganda). A main objective of the study is to identify the opportunities for, and limits to, financing environmental management through general budget support. The analysis is structured around three major questions:

1. Is the multi-year budgeting process, and more specifically the medium-term expenditure frameworks (MTEFs) in the studied countries policy-based and do they have credible medium-term estimates, therefore supporting efficiency and effectiveness at the sector level?
2. Does the environment sector have systems and processes that support the efficient and effective use of the resources at its disposal?
3. Is environmental policy a priority, does it receive equal treatment, or is it of low priority when it comes to competition for budgetary resources?

Related projects
Budget Support, Aid Instruments and the Environment - The country context
Neil Bird and Cecilia Luttrell, together with ODI researchers Lidia Cabral and Andrew Lawson, will examine country experience of public expenditure on the environment and how this is influenced by development partners. Four country case studies, in Ghana, Mali, Mozambique and Tanzania, will be undertaken and a synthesis report prepared.
Neil Bird, Cecilia Luttrell, Lidia Cabral and Andrew Lawson		July 2007 -February 2008
Addressing Environmental Objectives in the Context of Budget Support
The question that lies at the heart of this study is which aid instruments are best suited to promote environmental management that contributes to poverty reduction and development, and under which circumstances? General Budget Support (GBS) was a response to the dissatisfaction over the effectiveness of earlier aid delivery mechanisms, particularly concern over limited national ownership and resource allocation under project and programme support. Its origins are closely associated with the introduction of Poverty Reduction Strategy Papers (PRSPs) as a focus for collaboration between donors and partner countries.
Neil Bird, Lidia Cabral, Andrew Lawson and David Brown		May - December 2006