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Bank Group Policy on Program-Based Operations (PBOs)
The Bank Group Policy on Program-Based Operations (PBOs), also known as budget support, was approved on March 14, 2012. The Bank’s vision is to use PBOs, where appropriate, as part of an instrument mix tailored to country circumstances, focusing on support to RMC expenditure and policy reform to improve service delivery, thereby supporting poverty reduction through strong, sustained and shared growth. The Policy is expected to improve the efficiency and effectiveness of the Bank’s PBOs, which would invariably help to deliver better results in support of priority sectors in Regional Member Countries (RMCs). The primary objective of the Bank’s PBOs is to provide resources to the national budget, subject to specific country needs and context; to address diverse issues, including sustaining growth, reducing poverty, strengthening country Public Financial Management (PFM) systems and economic management policies, and contributing to recovery, state building and arrears clearance of post-conflict countries, inter-alia. In this regard, the PBO Policy articulates new provisions which will position the Bank to strategically respond to the rapidly evolving needs and requirements of RMCs. Some of these include a move towards programmatic approaches, a multi-sectoral approach to PBOs and an enhanced approach to policy dialogue.