Budget is the most significant instrument of government policy. There are three key objectives of public expenditure management: “fiscal discipline (expenditure control); allocation of resources consistent with policy priorities (“strategic” allocation); and good operational management.” This article focuses on the second objective, the facilitation of “strategic” allocation. The enhancement of sectoral policy coordination is crucial for an efficient budget planning and execution. Smooth policy coordination enables synergy, “the whole to perform better than the sum of the parts or at least prevents disintegration and fragmentation”. It not only prevents or at least diminishes duplication, overlapping or inconsistency of actions financed by the budget, but also due to synergy rises the outputs and outcomes of budget expenditures. Thus enhancements in policy coordination may even result in savings of budget expenditures.