Afghanistan Public Expenditure Review 2010 : Second Generation of Public Expenditure Reforms

Afghanistan Public Expenditure Review 2010 : Second Generation of Public Expenditure Reforms

Afghanistan and its donor community face a dilemma that is critical to the country's sustained development: how to channel more foreign assistance through the government's budgetary system (i.e., core budget) in the face of a huge capacit...

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Bibliographic Details
Main Author:	World Bank
Format:	Public Expenditure Review
Language:	English
Published:	World Bank 2012
Subjects:	ACCOUNTING ADMINISTRATIVE REFORM ANNUAL BUDGET ANNUAL BUDGET FORMULATION APPROPRIATION APPROPRIATIONS ARTICLE AUDIT COMMITTEE AUDIT OFFICE AUTHORITY BANK ACCOUNTS BANK FINANCING BANKS BUDGET ACCOUNTS BUDGET BALANCE BUDGET CIRCULAR BUDGET DATA BUDGET DEPARTMENT BUDGET ESTIMATES BUDGET EXECUTION BUDGET FORMULATION BUDGET FORMULATION PROCESS BUDGET STRUCTURE BUDGET SUBMISSION BUDGET SYSTEM BUDGETARY SYSTEM CAPACITY BUILDING CAPACITY CONSTRAINTS CAPACITY-BUILDING CAPITAL EXPENDITURE CAPITAL INVESTMENTS CASH MANAGEMENT CIVIL SERVANTS CIVIL SERVICE COLLECTION PROCESSES CONSOLIDATION CONTINGENT LIABILITIES CORRUPTION COST ESTIMATES DATA COLLECTION DECENTRALIZATION DECISION MAKING DEVELOPMENT BUDGET EXPENDITURES DEVELOPMENT EXPENDITURES DISBURSEMENT DISBURSEMENTS DISCRETIONARY POWERS DIVISION OF LABOR DOMESTIC BANK DOMESTIC REVENUE DONOR ASSISTANCE DONOR FUNDS EQUIPMENT EVALUATION OF PROJECTS EXPENDITURE CEILINGS EXPENDITURE ESTIMATES EXPENDITURE FRAMEWORK EXPENDITURE MANAGEMENT EXPENDITURE NEEDS EXPENDITURE POLICIES EXPENDITURES EXTERNAL ASSISTANCE EXTERNAL AUDIT EXTERNAL AUDITS EXTERNAL FINANCING FINANCES FINANCIAL ACCOUNTABILITY FINANCIAL COSTS FINANCIAL MANAGEMENT INFORMATION FINANCIAL MANAGEMENT INFORMATION SYSTEM FINANCIAL MANAGEMENT SYSTEM FINANCIAL RESOURCES FINANCIAL REVIEW FINANCIAL SITUATIONS FINANCING SOURCES FISCAL AGGREGATES FISCAL CONTROL FISCAL DEFICIT FISCAL IMPLICATIONS FISCAL POLICY FISCAL SPACE FISCAL SUSTAINABILITY FISCAL YEARS FOREIGN ASSISTANCE FORWARD ESTIMATES GOVERNMENT AGENCIES GOVERNMENT CAPACITY GOVERNMENT OFFICIALS GOVERNMENT SYSTEMS GROSS DOMESTIC PRODUCT HUMAN DEVELOPMENT HUMAN RESOURCES INFORMATION TECHNOLOGY INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INSTITUTIONAL ARRANGEMENTS INTERNAL AUDIT INTERNAL AUDITS INTERNATIONAL DEVELOPMENT INVESTMENT PROJECTS KEY FISCAL INDICATORS LEGAL FRAMEWORK LEGISLATURE LEGITIMACY LEVEL OF GOVERNMENT MACROECONOMIC STABILITY MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORK MEDIUM-TERM FINANCING MEDIUM-TERM FISCAL MEDIUM-TERM FISCAL FRAMEWORK MEDIUM-TERM PROJECTIONS MID-TERM REVIEW MINISTERS MINISTERS OF FINANCE MINISTRIES OF DEFENSE MINISTRY OF ECONOMY MINISTRY OF FINANCE MULTIYEAR PROJECTIONS NATIONAL AUTHORITIES NATIONAL BUDGET NATIONAL DEVELOPMENT NATIONAL EXPENDITURES NATIONAL OBJECTIVES NATIONAL POLICY NATIONAL PRIORITIES NATIONAL SECURITY OPERATING EXPENDITURES PENSION PENSION LIABILITIES PENSION REFORMS PENSIONS PERFORMANCE ASSESSMENT PERFORMANCE AUDITS PERFORMANCE MONITORING PERFORMANCE REPORTS PLAN FOR PERFORMANCE POLICY DISCUSSION POLICY FORMULATION POLICY RECOMMENDATIONS POOR GOVERNANCE POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRIVATE SECTOR PROCUREMENT ASSESSMENT PROCUREMENT FUNCTION PROCUREMENT POLICY PROCUREMENT PROCESS PROGRAM BUDGETING PROGRAMS PROVINCES PROVINCIAL OFFICES PUBLIC EMPLOYEES PUBLIC EXPENDITURE PUBLIC EXPENDITURE POLICY PUBLIC EXPENDITURE REVIEW PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC FINANCIAL MANAGEMENT PUBLIC FUNDS PUBLIC PROCUREMENT PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC WORKS QUALITY ASSURANCE REFORM PROCESS REHABILITATION RESOURCE ALLOCATIONS RESOURCE AVAILABILITY RESOURCE CONSTRAINTS RESOURCE MANAGEMENT SALARY PAYMENTS SECTOR MANAGERS SECTORAL EXPENDITURE SERVICE DELIVERY STATE ELECTRICITY STATE-OWNED ENTERPRISES STRUCTURAL BENCHMARKS SUB-NATIONAL SUSTAINABILITY OF REFORMS SWAP SWAPS TECHNICAL ASSISTANCE TRANSPARENCY TREASURY TRUST FUND UNREALISTIC BUDGETS WAGES
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20100611004136 http://hdl.handle.net/10986/2864

Description
Summary:	Afghanistan and its donor community face a dilemma that is critical to the country's sustained development: how to channel more foreign assistance through the government's budgetary system (i.e., core budget) in the face of a huge capacity gap to ensure effective administration of such expenditures. Without more money on budget, national objectives such as poverty reduction and the building of a stable state cannot be fully realized. Currently, 90 percent of the national budget' is externally financed. Overall aid in 2008-09 amounted to US$5.5 billion or 47 percent of Gross Domestic Product (GDP). The critical issue, however, is not so much the amount of aid, but weaknesses in its mode of delivery and impact. Three quarters of the aid bypasses the government's own budget system, moving through what is known as the 'external budget'. This dual budgetary system means that most economic activity in Afghanistan takes place outside the government's fiscal control, thus undermining the government's legitimacy and relevance to the Afghan people and weakening the budget's primacy as the tool of national policy. The aid needs to be on-budget and aligned with Afghan priorities. If the success of aid can be gauged by the extent to which it enables a recipient country to free itself of the need for that aid, then the Afghanistan foreign assistance program, as currently structured, is failing its mission. Afghanistan's fiscal sustainability, after having risen to a plateau in recent years, regressed in 2008-09 due to rising operating expenditures, mainly for security, and the country remains one of the world's most aid-dependent.

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