Uganda’s Virtual Poverty Fund : Pro-Poor Spending Reform

The provision of debt relief to Heavily Indebted Poor Country (HIPCs) commencing in the late 1990s, and the growing interest among donors in providing direct budget support, increased donor focus on national budget systems. Given that debt relief a...

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Bibliographic Details
Main Authors:	Sudharshan Canagarajah, Tim Williamson
Format:	Brief
Language:	English
Published:	2012
Subjects:	ACCOUNTABILITY ALLOCATION BASIC SOCIAL SERVICES BUDGET ALLOCATION BUDGET ALLOCATIONS BUDGET CLASSIFICATION BUDGET CLASSIFICATION SYSTEM BUDGET EXECUTION BUDGET FORMULATION BUDGET IMPLEMENTATION BUDGET MANAGEMENT BUDGET PREPARATION BUDGET PROCESS BUDGET REFORMS BUDGET REPORTING BUDGET SUPPORT BUDGET SYSTEMS BUDGETING CONFLICT DEBT DEBT RELIEF DEVELOPING COUNTRIES DISBURSEMENT DISBURSEMENTS ECONOMIC GROWTH EXPENDITURES FINANCIAL ARRANGEMENT FLEXIBILITY FUNGIBLE GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GOVERNMENT GUARANTEES HEAVILY INDEBTED POOR COUNTRIES HIPC INCOME POVERTY LEARNING LOCAL GOVERNMENT LOCAL GOVERNMENTS LOW INCOME MEDIUM TERM EXPENDITURE MEDIUM TERM EXPENDITURE FRAMEWORK MINISTRY OF FINANCE MONETARY FUND NATIONAL BUDGET POOR POOR COUNTRIES POVERTY ERADICATION POVERTY FUND POVERTY OUTCOMES POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION PROGRAMS PRIMARY EDUCATION PRIVATE SECTOR PROGRAMS PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE MANAGEMENT SYSTEMS PUBLIC FINANCIAL MANAGEMENT PUBLIC SECTOR RURAL RURAL ROADS SANITATION SECTOR PROGRAMS SERVICE DELIVERY SOCIAL SERVICE SOCIAL SERVICES SWAP SWAPS THE GAMBIA TOTAL PUBLIC EXPENDITURE TRANSPARENCY
Online Access:	http://documents.worldbank.org/curated/en/2008/03/9472321/ugandas-virtual-poverty-fund-pro-poor-spending-reform http://hdl.handle.net/10986/9527

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Summary:	The provision of debt relief to Heavily Indebted Poor Country (HIPCs) commencing in the late 1990s, and the growing interest among donors in providing direct budget support, increased donor focus on national budget systems. Given that debt relief and aid resources are fungible, donors were concerned that such debt relief be verifiably used to benefit the poor in the recipient country. In effect, the World Bank and the International Monetary Fund (IMF), acting on behalf of donors, asked that HIPC governments put in place systems to track the use of resources freed up by debt relief and show that these were in fact used to finance pro-poor programs. This required governments to have the capacity to identify policies and programs that would benefit the poor and to effectively channel and track resources to such programs. This note considers the Uganda Virtual Poverty Fund (VPF) to understand how well it served to allocate resources to pro-poor programs and what weaknesses were observed that may need to be corrected as other countries employ mechanisms similar to the VPF.

Uganda’s Virtual Poverty Fund : Pro-Poor Spending Reform

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