Erosion of Expenditure Management System: An Unintended Consequence of Donor Approaches

Premchand, A.

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Erosion of Expenditure Management System: An Unintended Consequence of Donor Approaches

IMF Working Paper No. 96/102

14 Pages Posted: 15 Feb 2006

See all articles by A. Premchand

A. Premchand

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: September 1996

Abstract

The paper considers the various procedures and practices relating to budgeting and accounting of foreign aid, and points out that as a result of the high degree of ringfencing associated with the aid, a kind of functional dyarchy has emerged with serious implications for expenditure management in the recipient countries. It concludes that more structured negotiations, improved information systems as well as performance agreements have the potential of avoiding the problems now encountered.

JEL Classification: H61, H81, H87

Suggested Citation: Suggested Citation

Premchand, A., Erosion of Expenditure Management System: An Unintended Consequence of Donor Approaches (September 1996). IMF Working Paper No. 96/102, Available at SSRN: https://ssrn.com/abstract=882998