The main objective of all EU budget support is poverty eradication and inequality reduction. General budget support should be used to support the attainment of the Sustainable Development Goals (SDGs). In most of the eight countries examined in this chapter, the provision of budget support coincided with a period when social indicators significantly improved. Regression analysis found these improvements to have been directly linked to the expanded delivery of key public services as a result of increased social and pro-poor spending. Budget support contributed, sometimes very significantly, to this higher spending. Improved outcomes were achieved in education (higher enrolment rates in primary education, higher transition rates from primary to secondary schools, and lower drop-out and repetition rates) and in health (greater use of health facilities, higher immunization rates, lower child and maternal mortality indicators, and lower incidence of diseases).
The gains were momentous, but not always equitable. Generally speaking, rural areas have lagged behind, regional differences have remained widespread, and gains in access have not always been accompanied by better quality of services. For example, greater education access was achieved in Ghana, Tunisia, and Zambia (Box 3.5), but the quality did not follow suit. In Burkina Faso, access to basic services such as education, health, and water and sanitation improved but their quality and infrastructure remained poor. In addition, in some countries, including Ghana and Uganda, the government’s fiscal position strongly deteriorated at the end of the evaluated period and the lack of resources for non-salary recurrent expenditures and investments have seriously weakened the service delivery systems. Finally, service delivery at local government level has not always received adequate attention.
Box 3.5. Expansion of Coverage of Key Social Services in Zambia
The evaluation of budget support in Zambia noted that, in the education sector: “The budget increases have enabled the Ministry to invest more in teachers, classrooms and books. The number of basic schools increased from 7,600 in 2005 to 8,400 in 2010, the number of teachers from 50,000 to 63,000 and the number of primary school pupils from 2.9 million to 3.4 million. The enrolment of girls improved and gender parity was almost achieved at the lower and middle basic levels. The number of Grade 9 examination candidates increased from 190,000 in 2005 to 280,000 in 2010 (with an increase of female candidates from 89,000 to 133,000). Partly as a result of a lack of resources, the quality of education remained low. However, it must be noted that improved access among underprivileged groups changed the composition of classrooms in primary schools, which had an impact on average examination results.” (page 18, Synthesis report).