General budget support is an aid modality that is likely to bring advancement and progress in the budgetary and managerial capacities of economically unstable countries. Sustainable economic growth and reduction in poverty also forms the objective of general budget support which attains it through coordination among donors and strategic planning between recipient countries and donors.

The primary aim of general support for budget is to emphasize on recipient countries’ national development strategies. It also works towards the advancement of aid harmonization through improved dialogue between the beneficiary countries and donors. In the past, various development issues were brought forward, such as excess small-scale off-budget projects, lack of ownership in the developing countries etc. The general budget support evolves itself by considering these issues.

Additionally, general budget support works towards improving the aid modalities which are already prevalent in the country and region. It enables the recipient country to administer various issues related to development and growth. Hence, the budget support strengthens their budgetary and administrative capacities of the country. This leads to holistic development of the society.

The provision of such support requires the recipient government to follow some conditions. They are:

• the promotion of stable macroeconomic and institutional conditions which is needed for the progress and development of private sector.
• the poor should find it convenient to access the public infrastructure and basic public services such as social security, health, education, drinking water.
• dedicated towards the objective of reduction of poverty and to improve the management and maintenance of public finances.

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