EU budget support is the mainform of EU assistancein the Eastern Partnership region.
Budget support is an aid modality which involves financial transfers to the national treasury account of the partner country, resulting from a process of dialogue, performance assessment and capacity development, based on partnership and mutual accountability. Eligibility criteria have to be met before and during the budget support programme and conditions need to be fulfilled before payments are made.
•a sound national or sector development plan;
•a stability-oriented macroeconomic framework, with fiscal and monetary policies favourable to economic growth;
•a relevant and credible programme to improve public financial management;
•transparency and oversight of national budgets.
Budget support offers a platform for dialogue with the partner country (Government, national control bodies and civil society) on policies and their financing, objectives and results, consistent with the principles of ownership, transparency and accountability. Support is provided to specific sectors which are also supported through state development programmes and are therefore also financed from the state budget of Azerbaijan.
Sector Policy Support Programmes implemented under the EU budget support modality in Azerbaijan focus on key policy areas and therefore the following sector programmes have been the subject of EU budget support:
1. The Energy Reform Support Program (ERSP) (2010-2012) with a value of €13 million and €1 million allocated for technical assistance. This is completed.
2. The Justice Reform Support Program (JRSP) (2011-2013) with the Ministry of Justice with a value of €14.5 million and €1.5 million for accompanying technical assistance. This is also nearing completion.
3. The Agriculture and Rural Development Support Program (ARDSP) (2012 – 2014) with the Ministry of Agriculture with a value of €13 million and €1 million allocated for technical assistance. This is in progress.
4. The Rural Development Support Program (RDSP) with a value of €19.5 million and €0.5 million for technical assistance. This is in progress.
For further information on budget support, please go to http://www.enpi-info.eu/library/content/future-approach-eu-budget-support-third-countries