The Rwanda Aid Policy was approved by the Rwandan government in July 2006.  It sets out the governments policies for ensuring that aid has the maximum impact on economic development and poverty reduction.  It contains an analysis of existing constraints on aid effectiveness (e.g., capacity problems, lack of predictability of aid, high transaction costs), and sets out a series of objectives, guiding principles and specific policies for improving aid effectiveness.  In a section on preferred aid modalities, it expresses its preference for unearmarked budget support, sector budget support and projects that are both on-plan and on-budget.