The budgetary allocations that a government makes to respond to the Millenium
Development Goals (MDGs), and especially HIV/Aids are measurements of
its commitment to poverty alleviation and addressing the HIV/Aids epidemic.
These budgetary allocations have a direct effect on a state’s ability to effectively
plan, co-ordinate and implement plans. Increasing donor aid to developing countries
has put the spotlight on government’s ability to absorb and spend the additional
funding in a sustainable way. In the developing countries government is the major
producer, employer and provider of social and welfare services. The AIDS pandemic
will probably affect poor countries governments’ ability to deliver services and
goods, and its efficiency.