Afghanistan National Budget

Afghanistan's National Budget

Afghanistan has two parallel budgets: a core budget comprised of all domestic revenue and the portion of donor financing managed by GIRoA; and an external budget, disbursed directly by donors.  Overall, nearly two-thirds of the international aid that flows into Afghanistan does so off budget, according to the Afghanistan Reconstruction Trust Fund (ARTF).  According to GIRoA, donors cover 100% of Afghanistan’s development budget and 35% of operating expenses.  Foreign Assistance accounted for 43% of Afghanistan's GDP in 2008. 

The Afghan budget cycle follows the solar year (SY), which begins on 21 March of the Gregorian calendar.  The current budget, for SY 1388, runs through 20 March 2010.  The SY 1389 budget has not yet been presented to parliament.  Assessment is that it may be passed in April. 

Core Budget

The core budget consists of an operating budget, covering current expenditure, and a development budget detailing reconstruction costs.  The Cabinet and Parliament must approve the core budget, which is subject to public financial management mechanisms.  The Ministry of Finance (MoF) annually publishes the Afghan national budget on a public website (http://www.budgetmof.gov.af) in English, Pashto, and Dari.  In addition, the MoF posts mid-year reviews of the national budget (reconciling expenditures with the budget ceiling), the MoF's Treasury Department execution and disbursement reports, and end-of-the-year closing account and audit reports on its website.

The core budget is funded by revenue collection and contributions from the international donor community.  Donor contributions are largely funneled through the ARTF, administered by the World Bank to increase the availability of un-tied donor money for the Afghan government.  ARTF funds both operating and development budgets, contributing $310m to wages and operations & maintenance (O&M) expenses, and $251m to development projects in SY1388.  ARTF funds about...