The technical assistance for Pro-Poor Planning and Budgeting is expected to contribute to improvement of access of the poor to quality social services and infrastructure. The expected outcomes are: “(i.) local poverty reduction strategies that are operationalized, linked to a pro-poor and participatory budget process; and (ii.) a nationwide CCT program that provides income support to the poor while building human capital.” Based on consultations with BAPPENAS and ADB during July and August 2006 and comments on the draft Inception Report, the Terms of Reference for the TA have been adjusted to focus on three components : (i.) Pro-Poor Planning and Budgeting; (ii.) Capacity Development; and (iii.) Conditional Cash Transfers.

At the same time, it was acknowledged that both the national government and local governments face challenges as they seek to translate their Medium Term Development Plans into action plans and annual budget documents which are focused on reducing poverty and achieving the MDGs. Thus the focus of the consultants work has been directed to strengthen capacity to the produce of pragmatic action plans to reduce poverty that are linked to a pro-poor budget process. The structure of the project is presented below: