Evaluation questions are country- and sector-specific and follow a similar pattern. An evaluation generally has no more than 12 questions. The first questions concern the relevance of the budget support and assess the extent to which the support responded to the institutional, political, economic, and social context of the country or sector and was coherent with government priorities. Subsequent questions analyse the direct effects of budget support inputs on aid processes, macroeconomic management, public finance management, the level and composition of public spending, policy formulation and implementation processes, and governance. Answers to these questions allow for the completion of step 1 of the evaluation methodology.
The scope of the budget support being evaluated (general and/or sector budget support) usually determines the number of questions asked under step 2 of the evaluation, with usually one question per theme or sector. These questions investigate the effectiveness and impact of the policies being supported. They start by identifying the changes in the competitive nature of the economy, in areas pursued by the budget support programs, in income and non-income poverty, in the use and quality of public services and their impact on the livelihood of the population. Once these changes are identified, the extent to which they are related to changes in macroeconomic management, PFM systems, sector policy or policy processes, and/or to other factors, is assessed. The scope of step 2 and the focus of the questions depends on the data available and may be limited due to the evaluation’s budget and time constraints.
Step 3 is a conclusive evaluation question, which assesses the extent to which budget support has contributed to the policy and institutional changes that were found to be important factors in reaching the observed outcomes and impacts at sector and country levels. This question provides a qualitative assessment of the efficiency, effectiveness, and sustainability of the budget support provided.