In September 2008, the Government of Nepal announced a budget that was highly ambitious on expenditure and revenue, but which was appropriate to the political context and the then fragile peace. The budget assumes a doubling of overseas aid and budget support is one of the mechanisms through which this scale up in aid occurred.

Mokoro consultant, Ann Bartholomew, carried out a scoping study to provide options for DFID and the World Bank for the design of a general budget support programme though which to scale aid up. The consultancy also provided recommendations on the appropriate way forward for both immediate and future DFID support.

This assignment was undertaken through a consideration of options for the provision of general budget support given the specific economic and political context of Nepal. The consultant also considered how best to address critical improvements in Government systems and arrangements for Government-donor dialogue needed to underpin successful budget support operations.