Links between the Poverty Reduction Strategy (PRS) and the budget, whether at the formulation, execution, or reporting stage, are integral to the successful implementation of the PRS and vital for strengthening government accountability. When the two systems are well integrated, three benefits are likely to emerge:
- PRS priorities are more likely to be implemented as planned.
- Spending agencies can be held to better account for performance.
- Parliament can have an increased role in monitoring PRS outcomes.
Yet low-income countries face significant challenges in trying to better link planning and budgeting initiatives. Fragmented institutional ownership and weak incentives have limited the ability of policymakers to link planning and budgeting processes.
The purpose of this note is to provide practical guidance to developing country practitioners and international donors. It builds on a study entitled Minding the Gaps, which was based on detailed case studies in nine low-income countries and a review of relevant experience in four higher-income countries.