Budget support is one of the most effective aid modalities in EU development assistance, promoting sustainable development through national systems of partner countries. The modality offers certain inputs, each of which has its role and weight in achieving the results, outputs and outcomes defined for budget support programmes. In the most common scenarios of budget support programmes these inputs are: financial assistance; complementary assistance, and policy dialogue.
Armenia has been a recipient of EU budget support since 2007 in key priority areas of EU-Armenia cooperation.
The current assignment is designed to provide a comprehensive assessment of the overall PFM in Armenia and assist the EUD and the Government in programming and monitoring EU budget support programmes that would effectively target the development priorities and needs of the country.
To achieve these objectives, the assignment foresees carrying out PEFA assessment in cooperation with ADB expert and supporting the EUD in assessing PFM and budget transparency and oversight eligibility criteria for budget support programmes, through the update of the PFM and Transparency Assessment Report and the PFM and transparency sections of the Disbursement Notes.

Global objectives
1. Improved programming and design of budget support programmes;
2. The EU Delegation to Armenia and the Government of Armenia have a better understanding of the state of play of the PFM implementation, its weaknesses and strengths;
3. Enhanced monitoring of Budget Support programmes;
4. The EU Delegation to Armenia gains tools for the evaluation of the PFM performance during budget support disbursements, analysis of the risk management framework and programming of new budget support programmes.

Specific objectives
1. Better performing budget support operations tailored to the needs of the citizens of the Republic of Armenia;
2. Budget support operations corresponding to the necessities and abilities of the Government of Armenia;
3. The Government of Armenia gains a framework for addressing the weaknesses of the PFM performance.

The project will provide technical assistance to the EU Delegation to Armenia in order to program and identify, prepare and monitor future budget support operations in cooperation with the Government of Armenia and other stakeholders.

The project will carry out the PEFA assessment, in cooperation with an expert from the Asian Development Bank, involving other stakeholders and donor organisations, in particular WB, IMF and ADB present in Armenia and update the EU Delegation Public Finance Management and Transparency Assessment Report.

The technical assistance will be based on the deployment of expertise. It will comprise experts in charge of the budget support programming and the PEFA and PFM Transparency assessment report analysis.

In order to achieve the expected results (impact), the experts will liaise regularly with the relevant organisations, EU Delegation to Armenia and relevant Ministries.