Fiscal Policy UnitMinistry of Finance

January 10, 2012

Fiscal Challenges / Risks oFiscal SustainabilityoIncreased Security ExpendituresoOperating & Maintenance costsoOthers

Fiscal Transparency (OBI context)

Significant growth in the size of Afghan Security Forces and its associated costs

2014 Transition and its adverse economic impacts on Afghan economy

Associated Risks with mining revenue (i.e Security)

Lack of Aid Predictability effects fiscal planning (particularly the government’s priorities)

Operating & Maintenance Costs (all accumulated assets in past 10 years have to be properly maintained in both security and non-security sectors)

Security sector Operating & Maintanance costs US$ 3.7 BillionCivilian Operating & Maintance cost of US$ 1.3 Billion

Citizens have access (including journalists) to documents and they can be involvement in budget preparation process

Journalists can aware the public about the government’s fiscal operations (revenue collection, expenditure execution, financing the deficit)

Public can hold the government accountableo The management of tax payer’s (public’s) money ANDo If it was not able to deliver better public services

Better information for decision-makers• Minister, DM and DG, Cabinet, and Parliament

OBI Survey conducted every two years by International Budget Partnership (NGO from USA). Compares over 80 countries.

• Review of budget documents released over a one year period (September to September).

– Recently released 2010 OBI Review looked at documents released between mid September 2008 and mid September 2009.

– Next 2012 Review (Sept 2010 and Sep 2011.

Open Budget Index Document

Published for 2010 OBI

Published for 2012 OBI Review

Executive’s Budget Proposal (58 Questions)

No YESFor 1390 budget (for 2012 review) ,this documents was made available on budget department’s website.

Citizens Budget(1 Question)

No YesAfter the approved 1390 budget, MoF produced this document which was publically available on budget department’s website.

Pre Budget Statement (3 Questions)

Yes(no score)

YesPublished for 1389-90 Budgets (not included in 2010 Review). This will be included in 2012 Review

Budget Summary / Minister’s Speech

No YesFirst published for 1389 Budget (Minister’s Speech)

Enacted Budget (1Question)

Yes (1389) Yes

Budget Timetable Yes Yes

Mid Year Review Yes (1387) No No Mid Year Review for 1389 budget

In year Reports Yes (1387) Yes 1388, 1389 and 1390

End year Report Yes (1387) YesProduced for FY 1389

Questions