Managing fiduciary risk when providing direct budget support

This paper provides guidance to DFID staff on how the public expenditure management elements of fiduciary risks should be assessed and managed where DFID provides funds directly to recipient governments to be spent as part of their budgets (direct budget support). It also sets out DFID's approach to the use of additional safeguards to provide assurances that the effect of budget support will be poverty reduction, and proposes some future directions for collaboration with other development agencies to harmonise approaches to assessing fiduciary risk and developing international standards.