This brief provides an overview of therole of monitoring and evaluation (M&E) in informingbudgetary decisions and presents one tool: the readinessassessment - that can help determine the M&E capacityand demand present in a country. Case studies on the use ofthis assessment are included from Egypt, Romania, and acountry in East Asia. This assessment tool focuses oncollecting baseline information on how well positioned agovernment is to design, build and sustain a results-basedM&E system. It is divided into three sections:incentives; roles and responsibilities; and capacitybuilding. There are 40 questions in the instrument thatcluster into eight areas. These questions identify issues atthe national, sub-national, or sector-wide levels ofgovernment, rather than at the program or project level. Thereadiness assessment tool seeks to assist individualgovernments, the donor community, and their multipledevelopment partners also involved in public sector reformto systematically address the requisites (present or not)for a results-based M&E system. With the informationgarnered from this effort, development partners can helpaddress the challenges inherent in improving on the currentsystem used to track progress towards achieving the resultsfrom government action.