| The characteristics of general budget support is to | | | | the result of the project that is screened for its |
| allow the administration of the beneficiary country to | | | | consistency and reliability with the government's |
| use the financial contributions at its will within the | | | | policy. |
| structure of the needs of the program. The main | | | | Advantage of continuity: The loans provide |
| objective of budget assistance is to contribute to the | | | | transformation of an economy seamlessly. This |
| recipient government's efforts in improving the | | | | transformation ranges from dependence on aid( in |
| economic state of the country. The encouragement | | | | the form of 100 percent grants) to dependence on |
| of policy reforms at international level and/or in | | | | financial markets( in the form of 100 percent private |
| specific fields is the primary purpose of budget | | | | funding) |
| assistance. | | | | Stable environment: The loan helps to stabilize |
| The loans for financial aid effectiveness have certain | | | | the partner government's process of budget. The |
| advantages which are described here as follows: | | | | countries which are based on broad multiyear |
| Ability to maintain and sustain: Incentives can be | | | | commitments can ease the instability and |
| created for the appropriate management of support | | | | unpredictability of aid funds. |
| in the form of foreign aid, since they promote means | | | | These advantages allow effective policy control by |
| for recovering costs within the partner country | | | | project assistance at the level of project |
| government. | | | | implementation. Hence, they would provide help in |
| Promotion of ownership: They can promote the | | | | forming their own systems to meet demands of |
| ownership of partner countries' government. This is | | | | public services. |