The budget support (BS) is an aid modality, through which EU supports the partner country to improve both the public policies and policy implementation capacities and resources. It involves direct financial transfers to the national treasury of a partner country where they can be managed using national systems.

Budget Support is not only financial support. By making available funds and engaging into a policy dialogue, the EU assists the partner country to enhance its budgetary capacity, put forward relevant policy targets, link those to realistic budgetary plans and establish relevant monitoring systems for policy implementation. The assistance through BS modality can involve either one specific sector or multiple sectors.

In Armenia, implementation of BS started in 2007 in several key sectors, such as justice, vocational education and training, agriculture and rural development, food security, public administration/anti-corruption, and public finance management. The choice of the BS sectors was in line with the priorities highlighted in the EU-Armenia ENP Action Plan and Single Support Framework, as well as in the Armenia Development Strategy 2014-2025. Extensive discussions have also been conducted among civil society organisations (CSOs), Business membership organisations, international organisations, international financial institutions (IFIs), and EU Member States prior to agreeing upon the priority sectors.

The following BS programmes have been implemented in Armenia since 2007:

Current

• Public Administration Reform

• Public Finance Policy Reform Programme in Armenia

• Better Qualifications for Better Jobs

• Support to Human Rights Protection in Armenia

Implemented

• Support to Agriculture and Rural Development

• Support for Justice Reform in Armenia - Phase II

• Support to the Government of Armenia for the implementation of the ENP Action Plan and preparations for the future Association Agreement – Phase II

• Support to the Government of Armenia for the implementation of the ENP Action Plan and preparations for the future Association Agreement

• Continuation of vocational education and training (VET) reform and development of an employment strategy

• Support to the Justice Reform in Armenia – Phase I

• Support to Poverty Reduction Strategy through reforms in Vocational Education and Training