====Oversees Development Assistance (ODA)====
Transfers include official development assistance (ODA). Ideally official development assistance should be seen as part of taxes and not transfers. Aid policies policies✷ suggest more aid be delivered in the form of budget support, which implies that they would be disbursed in much the same way as national public budget resources (OECD, 2009). Official development assistance is usually seen as part of transfers, as donors are still disbursing most of their aid through projects and programmes, rather than through recipient country budget processes. Another important feature that distinguishes official development assistance from taxes is that they are levied in foreign countries, rather than nationally, and the political and administrative process of securing ODA resources is very different from taxes (OECD, 2009).
In many developing countries, transfers remain a major source of financing for sanitation and drinking-water, mostly for [[Capital_Expenditure_(CapEx)|capital expenditure]] (WHO and UN-Water, 2012). Over US$ 8.9 billion in [http://en.wikipedia.org/wiki/Official_development_assistance official development assistance (ODA)] (part of transfers) was directed to sanitation and drinking-water in 2009 (WHO and UN-Water, 2012). Official development assistance for sanitation and drinking-water accounts for more than 1% of Gross Domestic Product (GDP) in seven developing countries (see table 1).
'''Figure 1. Trends in official development assistance (ODA) for water and sanitation,<br> education, and health/population/HIV/AIDS, as a percentage of total ODA commitments, 1995–2010'''
[[Image:Transfers fg 1.jpg|thumb|none|600px|Source: WHO and UN-Water, 2012, page 51]]
====Budget support====