Is There a Place for Virtual Poverty Funds in Pro‐Poor Public Spending Reform? Lessons from Uganda's PAF
Year: 2003
Type: article
Abstract: Various developing countries with weak public expenditure management systems are establishing virtual poverty funds (VPFs), drawing on the experience of Uganda's Poverty Action Fund. As a mechanism for tagging and tracking the performance of specific poverty‐reducing expenditures in the budget, a VPF can be useful. However, this article argues that such devices should be treated from the outset as transitional, and as part of wider processes of strengthening public expenditure management; otherwise, they can seriously distort public expenditure allocations and management systems, potentially undermining growth. Emphasis needs to be placed on identifying the right balance of expenditures in the entire budget; improving the effectiveness and efficiency of existing allocations; and developing better public‐sector policies for promoting pro‐poor private sector growth.
Source: Development Policy Review
Authors: Tim Williamson, Sudharshan Canagarajah
Institutions: Overseas Development Institute, World Bank, World Bank Group
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2111870580