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Fiscal bulletins provides information on key fiscal aggregate to the citizens of the country. It helps people
understand and know the governments performance with respect to its fiscal operations. It also trends in
actual core budget expenditures and domestic revenue collection which are essential to the public so they
can know and hold the government responsible for the management of the tax payers money during the
particular quarter.
I am grateful to share the 18th edition of the Quarterly Fiscal Bulletin for the fourth quarter of 1390. This
edition of the bulletin provides a snapshot of the actual domestic revenues collection and core budget
execution during the quarter. An attempt has been made to provide analytical analysis of the governments
fiscal position over the quarter.
The section 5 of the bulletin includes an interesting article explaining The Impact of the Transition and
Transformation Periods on Afghanistan Macro-Economic Outlook for 2012-25. I hope you will find
this article useful and informative.
I would like to take this opportunity to thank the Fiscal Policy Unit for analysis and drafting the Quarterly
Fiscal Bulletin for the fourth quarter of FY 1390. I would also like to extend my gratitudes to the Budget
Department, Revenue Department, Treasury Department and other departments for their valuable input and
support. I also thank Making Budget & Aid Works (MBAW) project and Adam Smith International (ASI)
for their constantly technical support to the Unit.
We would value your comments and queries on this publication. Please address your points to Mr. Niaz
Shinwari, Acting Head of the Fiscal Policy Unit of the Ministry of Finance at shinwari.niaz@gmail.com.
I hope you will find this publication useful and interesting. It will soon be available on the Ministry of
Finances website (www.budgetmof.gov.af).
www.budgetmof.gov.af
www.mof.gov.af
The material in this publication may be freely quoted and reprinted with acknowledgement
Quarterly Fiscal Bulletin, Quarter 4, 1390
CONTENTS
D E V E LOP ME N T BU D GE T
Gra nts (3) 5,846.9 25,522.7 3.5 4,531.3 4,991.2 9,232.5 12,856.2 31,611.3 3.6 6,088.5 23.9 70,072.5 -54.9
E xpe nditure s 15,585.2 43,923.8 6.0 5,191.7 11,730.6 15,429.0 20,316.3 52,667.5 6.0 8,743.7 19.9 102,336.5 -48.5
Discretionary Budget 4,826.9 10,138.4 1.4 1,247.8 2,885.6 4,062.3 4,874.3 13,069.9 1.5 2,931.5 28.9 27,141.9 -51.8
Non-discretionary Budget 10,758.3 33,785.4 4.6 3,943.9 8,845.0 11,366.7 15,441.9 39,597.6 4.5 5,812.2 17.2 75,194.6 -47.3
Budge t Ba la nce (3) -9,738.3 -18,401.1 -2.5 -660.4 -6,739.3 -6,196.5 -7,460.0 -21,056.3 -2.4 -2,655.2 14.4 -32,264.0
IN T E GR AT E D BU D GE T
R e ve nue s (3) 43,708.2 160,372.8 22.0 45,343.3 42,464.7 45,820.3 57,741.5 191,369.8 21.9 30,997.0 19.3 230,447.2 -17.0
Domestic Revenues 22,691.6 80,384.3 11.0 23,450.3 23,843.3 24,146.0 27,909.9 99,349.4 11.4 18,965.2 23.6 93,663.8 6.1
Grants (3) 21,016.5 79,988.5 11.0 21,893.1 18,621.4 21,674.3 29,831.6 92,020.4 10.5 12,031.9 15.0 136,783.4 -32.7
E xpe nditure s 53,645.1 154,376.6 21.2 28,324.3 47,392.1 54,213.2 72,031.6 201,961.2 23.1 47,584.5 30.8 253,062.2 79.8
Ba la nce s
Excluding Grants -30,953.5 -73,992.3 -10.1 -4,874.0 -23,548.8 -30,067.2 -44,121.7 -102,611.7 -11.7 -28,619.4 38.7 -159,398.4
Including Grants (3) -9,936.9 5,996.2 0.8 17,019.1 -4,927.4 -8,393.0 -14,290.1 -10,591.4 -1.2 -16,587.5 -276.6 -22,615.0
Fina ncing
Balance Including Grants -9,936.9 5,996.2 0.8 17,019.1 -4,927.4 -8,393.0 -14,290.1 -10,591.4 -1.2 -16,587.5 -276.6
Sale of Land and Buildings 12.3 107.6 0.0 22.7 9.2 9.8 17.2 59.0 0.0 -48.6 -45.2
Sale of State Owned Enterprises 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
Le nding/ Borrowing -9,924.6 6,103.7 0.8 17,041.7 -4,918.1 -8,383.1 -14,272.9 -10,532.4 -1.2 -16,636.1 -272.6
1. In the published budget document, Afs 13.2 billion in domestic revenues are allocated to the development budget in 1390. In order to ensure comparability with actuals, all domestic revenues shown under the development
budget in the published budget document have been re-allocated to the operating budget in the above table.
2. Fiscal sustainability is measured as domestic revenues as a percentage of operating budget expenditures
3. Actual figures are not comparable to the development/integrated budget grants or balances shown in budget documentation, as grants/balance in budget documentation also includes loans. Loans are shown as a financing item
in the above table.
the development budget balance had a deficit of Afs Devlopment Budget Balance YTD
Core Budget Balance YTD
20,000
7.5 billon.
10,000
The YTD data shows that Operating budget carry
the surplus of around Afs 10.5 billion which is less Q1 1389 Q2 Q3 Q4 Q1 1390 Q2 Q3 Q4
0
for instance, non tax revenue and tax revenue largely 40,564
49,954
42,149
contributed to total increase in this quarter, while 32,838
34,968
revenues from custom duties fell even behind 1389s 15,611
23,450
27,787
20,606
collection. Good performance of non-tax revenue 8,543
13,737
AFMIS data extract 26 May 2012
was attributable to large (one time) receipts by some 6,869
1.3 Expenditures
Total core budget for FY 1390 is Afs 258.0 billion (or about 29% of the projected GDP), which includes an
operating budget of Afs 156.0 billion and a development budget of Afs 102.0 billion.
Operating Budget
Operating expenditures consists of wages and salaries, goods and services, capital expenditures to conduct day to
day operations of the government. It also includes minor interest payments and other social transfers. It should be
kept in mind that operating expenditures has been increasing in the past couple of years as a result of the increase
in the numbers of the school teachers and soldiers and the rapid implementation of Pay & Grading reforms that
basically pays higher wages to civil servants and teachers as opposed to the old system.
The operating budget for 1390 increased to Afs 156.0 billion from Afs 110.5 billion in 1389. The increased amount
(Afs 45.5 billion or 5.0% of GDP) was allocated for wages and other expenditures such as the increased security
forces (ANA and ANP), higher pension spending and the further implementation of the Pay & Grading reforms of the
Government. The total operating expenditure during the the fourth quarter was Afs 51.7 billion when compared to
Afs 38.1 billion spent over the same period in 1389.
Development Budget
The total original development budget for the year 1390 was Afs 74 billion, which was later increased to Afs
101.2 billion after the inclusion of the supplementary projects from 1389. The discretionary projects consist of
Afs 24.2 billion and Afs 74.3 billion has been allocated to non-discretionary development projects. The total
revenue to finance the development expenditures is Afs 83.3 billion, which includes Afs 13.2 from the domestic
revenues (including Aynak) and Afs 69.9 billion donor grants.
The total development budget expenditures were Afs 20.3 billion or (19% of the total FY Development Budget)
in the fourth quarter 1390. Development expenditures was Afs 4.7 billion or 30% higher compared to Afs 15.6
billion spent the same period in 1389. The YTD development expenditures were Afs 52.7 billion till the end of
4th quarter 1390, around 19% higher compared to the actual amount of Afs 43.9 by end of fiscal year 1389, hence
showing improved execution rate beyond what was committed in Kabul Conference (10% increase in absolute
spending). This indicates that the development budget execution rate was about 30% till the end of fourth quarter
of 1390.
Expenditure 116,957
129,953
149,294
Budget 85,280
93,808
D OME S T IC R E V E N U E S (2) (3) 22,691.6 80,384.3 11.0 23,450.3 23,843.3 24,146.0 27,909.9 99,349.4 11.4 18,965.2 23.6 93,663.8 6.1 106.1
11 T a x R e ve nue s 11,141.9 38,697.6 5.3 9,377.8 10,540.4 11,891.4 13,025.5 44,835.1 5.1 6,137.5 15.9 46,194.5 -2.9 97.1
111 Fixed Taxes 2,353.1 9,080.9 1.2 2,296.1 2,503.8 2,534.0 2,710.8 10,044.7 1.1 963.8 10.6 12,314.6 -18.4 81.6
112 Income Taxes 3,134.7 10,293.8 1.4 2,844.3 2,577.4 3,460.0 3,675.5 12,557.2 1.4 2,263.3 22.0 11,878.2 5.7 105.7
113 Property Taxes 82.2 245.4 0.0 103.2 86.2 80.9 103.0 373.3 0.0 127.9 52.1 329.8 13.2 113.2
114 Sales Taxes 4,712.0 16,302.5 2.2 3,609.3 4,583.8 4,849.6 5,563.0 18,605.6 2.1 2,303.1 14.1 18,996.0 -2.1 97.9
116 Other Taxes 653.2 2,152.2 0.3 388.4 634.0 853.9 833.0 2,709.3 0.3 557.1 25.9 1,962.0 38.1 138.1
117 Tax Penalties and Fines 206.6 622.7 0.1 136.5 155.4 113.0 140.1 545.0 0.1 -77.7 -12.5 713.8 -23.6 76.4
12 Customs D uty, Import T a xe s 7,116.7 27,623.2 3.8 7,849.5 8,058.1 7,769.5 6,869.3 30,546.4 3.5 2,923.2 10.6 32,542.6 -6.1 93.9
13 N on T a x R e ve nue 3,437.4 11,521.8 1.6 5,721.4 4,338.5 3,542.4 6,548.5 20,150.9 2.3 8,629.1 74.9 12,144.3 65.9 165.9
131 Income from Capital Property 57.4 281.1 0.0 2,480.4 68.2 115.3 111.7 2,775.7 0.3 2,494.6 887.5 370.9 648.3 748.3
132 Sales of Goods and Services 1,477.5 4,506.4 0.6 1,266.3 1,165.2 1,226.4 3,715.1 7,373.0 0.8 2,866.6 63.6 4,150.4 77.6 177.6
133 Administrative Fees 1,758.0 6,354.5 0.9 1,729.5 2,881.3 2,012.4 2,261.5 8,884.7 1.0 2,530.2 39.8 7,226.6 22.9 122.9
134 Royalties 17.1 40.4 0.0 41.7 67.3 25.2 145.3 279.5 0.0 239.2 592.4 123.4 126.5 226.5
135 Non Tax Fines and Penalties 127.4 339.3 0.0 191.2 128.2 121.9 229.9 671.2 0.1 331.9 97.8 273.0 145.8 245.8
136 Extractive Industry 0.0 0.0 0.0 Extractive
12.3 Industry
28.2 41.2 85.0 166.7 0.0 136 166.7 N/A Extractive
0.0 Industry
0.0 122.6
14 Misce lla ne ous R e ve nue 317.0 733.6 0.1 -17.3 217.0 189.3 442.6 831.7 0.1 98.1 13.4 1,169.3 -28.9 71.1
17 S ocia l Contributions 678.7 1,808.1 0.2 518.9 689.2 753.4 1,023.9 2,985.4 0.3 1,177.2 65.1 1,613.2 85.1 185.1
GR AN T S (1) 21,016.5 79,988.5 11.0 21,893.1 18,621.4 21,674.3 29,831.6 92,020.4 10.5 12,031.9 15.0
191 Foreign Governments 16,663.1 59,346.3 8.1 17,733.6 14,296.6 13,712.8 21,390.0 67,132.8 7.7 7,786.5 13.1
192 International Organisation 3,981.4 19,954.2 2.7 4,159.5 4,182.1 7,906.6 8,424.7 24,672.9 2.8 4,718.7 23.6
193 Other Government Units 372.1 688.0 0.1 0.0 142.8 54.9 17.0 214.6 0.0 -473.3 -68.8
T OT AL OP E R AT IN G BU D GE T R E V E N U E 37,861.3 134,850.1 18.5 40,812.1 37,473.5 36,587.7 44,885.3 159,758.5 18.3 24,908.5 18.5 99.6
Domestic Revenues 22,691.6 80,384.3 11.0 23,450.3 23,843.3 24,146.0 27,909.9 99,349.4 11.4 18,965.2 23.6 93,663.8 6.1 106.1
as percentage of total 59.9 59.6 57.5 63.6 66.0 62.2 62.2 76.1
External Grant Support 15,169.7 54,465.8 7.5 17,361.8 13,630.2 12,441.7 16,975.4 60,409.1 6.9 5,943.3 10.9 90.6
as percentage of total 40.1 40.4 42.5 36.4 34.0 37.8 37.8 23.9
Source: FPU using AFMIS data downloaded on the 26 May 2012
1. Actual figures are not comparable to the development/ integrated budget grants or balances shown in budget documentation, as grants/ balance in budget documentation also includes loans. Loans are shown as a financing item in above table.
2. Revenues exclude proceeds from the sale of fixed assets (150), and loans (18). These items are included under financing.
3. In the published budget document, Afs 13.2 billion in domestic revenues are allocated to the development budget in 1390. In order to ensure comparability with actuals, all domestic revenues shown under the development budget in the published budget
document have been re-allocated to the operating budget in the above table.
GDP) were collected during the 4th quarter 1390. 5.0 2.5
3.8 2.8
Table 2.2 shows revenue collections by category based on location classification (Provinces and Line Ministries).
Taxation Category: All provinces collected Afs 21 billion of total tax revenues during YTD Q4 1390,
compared to Afs 18.4 billion (an increase by 14%) during the same period in 1389. However, all other
provinces also increased their contribution from Afs 3.3 billion in YTD Q4 1389 to Afs 4.9 billion in YTD
Q4 1390, which shows an increase by 47%. Total tax collection by all central ministries were Afs 23.8
billion, a 17% increase over Afs 20.3 billion collected during YTD Q4 1389.
Non-Tax: This category highly contributed to the total revenue increase in YTD 1390. The central ministries
collected largest portion, Afs 13.5 billion compared to Afs 6.8 billion, an increase by Afs 6.6 billion (or 97).
Receipts from Aynak premium and 3G license that were collected by Ministry of Mines and Ministry of
Communication were main reason for such high increase. However, collection by provinces also increased
from Afs 4.7 billion to Afs 6.7 billion between 1389 and 1390.
Custom Duties Category: Despite lower performance by some of the custom offices, total provinces
collected Afs 28.7 billion, an increase of Afs 3.3 billion (or 13%) over Afs 25.4 billion collected the same
period in 1389. Most of the increases in revenues were by Herat custom offices and also other provinces.
Below are the details of 5 major custom offices that collect about 87% of the total custom duties and import taxes
during 4th quarter 1390.
Herat customs office: This custom office collected Afs 2.5 billion in the 4th quarter 1390 that shows an
increase of Afs 255 million (or 11%) over Afs 2.2 billion collected during the same period 1389. However,
compared to its ambitiously set quarterly target it shows reduction.
Nangarhar customs office: Total custom duties of around Afs 1.0 billion were collected compared to Afs
1.9 billion collected the same period in 1389, a 45% reduction in duties. The main reason for duties reduction
in Nangarhar custom office was mainly attributed to decline in imported goods due to transit problem in
Karachi Pakistan.
Balkh customs office: As compared to 3rd quarter 1390, Balkh customs improved its custom duties
collection which collected Afs 1.4 billion, an increase of Afs 342 million or (33%) over around Afs 1.0
billion collected the same time in 1389.
Quarterly Fiscal Bulletin Page | 10 Q4 - 1390
Kandahar customs office: This custom office collected Afs 266 million, a reduction of Afs 88 million or
(25%) of Afs 354 million collected the same period in 1389. The total also shows reduction against quarterly
target. However, its YTD collection of Afs 1.7 billion shows an increase of Afs 322 million over Afs 1.4
billion collected the same period in 1389.
Nimroz customs office: Total custom duties of Afs 566 million were collected in 4th quarter 1390 that shows
a 12% increase over Q4 1389 collected amount of Afs 506. But this shows reduction against its quarterly
target.
The reasons for lower performance in some of the above custom offices are reduction in the volume of
imports in some custom offices such as Nangarhar and Kandahar (because of the transit issues in Pakistan)
and also average duty rate.
Figure 2.3 Custom duties Figure 2.4 - Customs revenues in 'top 5' provinces, Q4
Targets 32,543
Customs Revenue 29,288
30,546 Balkh; 1376.6m
collected, 1688.8m
(Afs million) 25,885 28,134 target (82%)
23,677
26,034
21,297
Herat; 2496.7m
22,780
19,137 collected,
Actual collections
20,068 3684.9m target
15,908 Nangarhar;
17,356 (68%) 1033m collected,
13,641
10,901
14,644 2185.9m target
12,149 Nimroz; 566m (47%)
7,850 Kandahar; 266m
9,654 collected,
4,826
689.8m target collected, 648m
7,159
target (41%)
2,150 4,773 (82%)
AFMIS data extract 26 May 2012 AFMIS data extract 26 May 2012
2,386
Sales of Goods and Services was the single largest contributor that collected Afs 3.7 billion in Q4 1390,
which shows an increase of Afs 2.2 billion or (151%) over Afs 1.5 billion collected the same period in 1389.
Only of its major component, Mobile Telephone Service received Afs 2.6 billion from the sale of 3G License
to etisalat Mobile Company during the 4th quarter.
Administrative fees was another main contributor that collected Afs 2.3 billion in Q4 1390. This shows an
increase of Afs 504 million or (29%) over Afs 1.8 billion collected during the same time in 1389. For this
category, the main contributors include as Passport Revenues collected Afs 180 million, Over flight
Revenues Afs 109 million, Registration Motor Vehicles Afs 142 million and Fuel Fees for Roads (which
was implemented in last quarter 1390) collected Afs 132 million of the additional revenues in Q4 1390.
Ministry of Fina nce 69,220.0 76,170.4 10.0 37,284.1 39,269.3 27,585.1 30,509.9 2,883.8 4,208.1 1,467.0 2,183.1
Mustofiats (1) 6,344.0 9,307.4 46.7 3,340.7 4,201.2 0.0 0.0 1,655.8 2,958.4 1,347.5 2,147.7
Customs (1) 44,211.6 43,976.6 -0.5 15,548.7 12,388.9 27,585.1 30,509.9 1,061.8 1,052.2 16.1 25.6
Large Taxpayer Office (LTO) 12,727.6 14,940.1 17.4 12,689.5 14,925.3 0.0 0.0 34.9 12.5 3.1 2.3
Medium Taxpayer Office 5,771.1 7,788.7 35.0 5,704.5 7,753.9 0.0 0.0 66.5 34.7 0.1 -0.0
Small Taxpayer Office 0.6 0.0 -100.0 0.6 0.0 0.0 0.0 0.0 0.0 -0.0 0.0
Other Ministry of Finance 165.1 157.7 -4.5 0.0 0.0 0.0 0.0 64.9 150.3 100.3 7.4
Othe r Ministrie s 11,164.2 23,179.0 107.6 1,413.4 5,565.7 38.1 36.5 8,637.9 15,942.8 1,074.7 1,634.0
Ministry of Transport and Aviation 3,395.9 3,948.7 16.3 2.1 0.0 0.0 0.0 3,393.8 3,948.3 0.0 0.4
Ministry of Interior 2,815.1 3,936.4 39.8 1,395.0 1,340.1 0.0 0.0 1,405.9 2,586.3 14.1 10.0
Ministry of Communication 1,736.1 4,087.7 135.5 0.0 0.1 0.0 0.0 1,736.1 4,087.6 0.0 0.0
Ministry of Foreign Affairs 715.2 671.9 -6.1 0.0 0.0 0.0 0.0 712.9 670.6 2.3 1.3
Ministry of Martyrs, Disabled and Social Affairs1,019.8 1,089.4 6.8 0.0 0.0 0.0 0.0 162.8 152.1 857.0 937.3
Other Budgetary Units 1,482.2 9,444.9 537.2 16.4 4,225.6 38.1 36.5 1,226.5 4,497.8 201.2 685.0
Source: FPU using AFMIS data downloaded on the 26 May 2012
(1) All revenue collections for Object codes 11106,11107,11109,11110,11404,12000-12007,13331,13348 have been reallocated to the Customs office given these revenues are collected at the border, however in AFMIS these
revenues are sometimes allocated under Mustofiats.
(2) Afghanistan Revenue Department taxation revenues (ARD) are measured as total taxation revenues minus Customs Office taxation revenues
Table 2.3 above, shows what revenue agencies that were responsible for the changes in revenue collections
between YTD Q4 of 1389 and YTD Q4 of 1390. Between these two periods, the total additional revenue were
about Afs 19 billion or (23.6%) which were mainly collected by the following collecting agencies:
The category Other Ministries collected Afs 12 billion of additional revenues which include key
ministries such as the Ministry of Interior contributed Afs 1.1billion (40%), the Ministry of
Communication contributed Afs 2.4 billion or (136%) and the Ministry of Mines collected Afs 2.4
billion of additional revenues during this period.
In the Ministry of Finance category, the Mustofiats collected around Afs 3 billion of the additional
revenues during this period. However, the main collecting agency, Custom offices did not perform well
and shows a small reduction compared to previous year actual amount. The additional revenues only
include Afs 2.9 billion form custom duties.
Both the Larger Taxpayer Offices (LTO) and Medium Taxpayer Offices (MTO), almost equal
contribution, collected around Afs 2.2 billion of the additional revenues respectively during this period.
2.8 Grants
Donor grants which makes up an essential part of the National Budget as they finance over nearly 40% of the
operating budget expenditures, especially security related expenditures and almost the entire development budget
with a small proportion being financed using concessional loans and part of the domestic revenues.
Total grants receipts to the Core Budget were Afs 29.8 billion (13.6% of Q4 GDP) during the 4th quarter
compared to Afs 21.0 billion (11.5% of Q4 GDP) disbursed the same period in 1389. This shows a rise of Afs 8.8
billion or (42%) to the total grants disbursements. Most of the increases in grants receipts come in development
budget that will be described in their respective sections.
Quarterly Fiscal Bulletin Page | 13 Q4 - 1390
Operating Grants
The total operating grants disbursed during 4th quarter 1390, were around Afs 17 billion (8% of Q4 GDP),
With an increase of Afs 1.8 billion or (12%) over Afs 15.2 billion (8.3% of Q3 GDP) that were disbursed the
same period in 1389. Only grants received through LOTFA and CSTC-A were increased by Afs 1.5 billion and
Afs 2.0 billion over Afs 5.4 billion and Afs 3.2 billion that were disbursed during the same period in 1389
respectively. In contrast, the grants received through ARTF decreased from Afs 5.5 billion in Q4 1389 to Afs 4.8
billion in Q4 1390.
Figure 2.7 - Operating grant revenues, Afs billions Table 2.4 - Operating grants, Afs millions
1389 1389 1389 1390 1390 1390 1390
1390 grants receipts
Total Operating All Values are in Million Afs Qtr 4
Qtr
Qtr 4
YTD
% of Total Qtr 3
Qtr
Qtr 4
Qtr
Qtr 4
YTD
% of Total
49,206 10002 Law & Order Trust Fund (LOTFA) 5,428 24,404 45% 6,171 6,893 25,075 42%
(Afs million) 54,466
43,434 39,323 50,754 Combined Security Transitional
43,332 10004 3,238 13,507 25% 6,169 5,214 24,980 41%
39,296 Command Afghanistan (CSTC-A) MoD
40,391 36,769
30,992 1389 grant receipts 10005
Combined Security Transitional
1,007 1,007 2% 0 0 4,203 7%
29,559 31,333 Command Afghanistan (CSTC-A) MoI
17,381 26,562
AFMIS data extract 26 May 2012
17,362
14,163 19,898
6,806 11,326 11,528
11,279
3,339 AFMIS data extract 26 May 2012
Development Grants
Total development grants disbursed were Afs 14.7 billion (6.7% of Q4 GDP) for the 4th quarter compared to Afs
5.8 billion (3.2% of Q4 GDP) the same period in 1389, an increase of Afs 8.8 billion or (151%) in the
development grants disbursement during this period. This implies that the development budget spending highly
increased during this quarter as a result YTD execution rate reached above 50%. Amongst the largest grant
recipient projects, the Road Network Dev Investment Program Project 2 which was funded by Asian
Development Bank, disbursed around Afs 2.6 billion in the 4th quarter 1390. The second recipient was MOPH
Partnership Contracts for Health Services Program that was funded by the US and USAID, disbursed Afs
1.3 billion. The other recipient was National Emergency Rural Access Project, funded by ARTF, and spent
Afs 1.1 billion during this period.
2-25 R ECU R R EN T EXPEN D IT U R ES 42,163.9 125,090.1 17.1 43,717.6 59,362.9 167,511.1 19.2 N/A 197,627.6 84.8 42,421.0 33.9
21 Compe nsa tion of Employe e s 28,141.1 86,474.0 11.8 28,490.3 35,124.4 111,698.6 12.8 109,884.0 114,553.0 97.5 25,224.6 29.2
Operating Budget 28,141.1 86,474.0 11.8 28,490.3 35,124.4 111,698.6 12.8 109,884.0 114,553.0 97.5 25,224.6 29.2
Development Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A 0.0 N/A
22 U se of Goods a nd Se rvice s 13,297.8 32,968.7 4.5 13,188.6 20,672.8 46,764.7 5.3 N/A 68,120.7 68.6 13,796.0 41.8
Operating Budget 8,204.4 17,158.5 2.4 7,672.4 11,445.1 25,855.5 3.0 22,960.3 28,113.6 92.0 8,697.0 50.7
Development Budget 5,093.4 15,810.2 2.2 5,516.2 9,227.6 20,909.2 2.4 N/A 40,007.1 52.3 5,099.0 32.3
23 Inte re st (1) 7.3 79.5 0.0 39.7 7.5 92.0 0.0 350.0 350.0 26.3 12.5 15.7
Operating Budget 7.3 79.5 0.0 39.7 7.5 92.0 0.0 350.0 350.0 26.3 12.5 15.7
Development Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A 0.0 N/A
24 Subsidie s a nd T ra nsfe rs 717.7 5,567.9 0.8 1,999.0 3,558.2 8,955.8 1.0 14,604.0 14,604.0 61.3 3,388.0 60.8
Operating Budget 717.7 5,151.6 0.7 1,999.0 3,558.2 8,955.8 1.0 0.0 14,604.0 61.3 3,804.3 73.8
Development Budget 0.0 416.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0 N/A -416.3 -100.0
purposes. The main reason for this increase was due AFMIS data extract 26 May 2012
to the growth in the number of ANA and ANP, and
from the implementation of public administrative
Compensation of Employees
Compensation of employees includes wages and salaries, food for employees, transportation, advance payments
and some minor social benefits. As mentioned before wages and salaries cover the huge portion of the operating
budget or 72 percent of the total. Wages and salaries are Afs 35.1 billion in 4 th quarter of 1390 compared to the
spending of Afs 28.1 billion when compared to the same period last year.
While the YTD Wages and salaries are over Afs 109 billion, or 12.5 percent of GDP. The actual spending on
wages and salaries in 1389 was Afs 86.5 billion or 11.8 percent of GDP. This is 29 percent or an Afs 25.2 billion
increase over the previous year spent on wages and salaries. The most important reason for this high increase in
wages and salaries is due to the increase in the tashkeel of ANSF reaching a peak of 352,000 and from the
implementation of the Pay and Grading reforms which lead to increase civil servants employees. This would
ensure that Afghanistan will approach its MDG objectivesone of the vital points is to spread education services
and cover unsecured area in some part of the country as well, thus government is hiring 10,000 new teachers
every year. Civil Service tashkeel is projected to grow with the increase in the population growth. These are
some of the many pressures on our operating expenditures.
This category includes travel, communication, contracted services, repairs and maintenance, utilities, and fuel. In
1390 budget, Goods and Services is about Afs 28 billion or 3.2 percent of GDP. This category includes travel,
communication, contracted services, repairs and maintenance, utilities, and fuel. Spending on goods and services
in the fourth quarter of 1390 is about Afs 11.4 billion. This is Afs 4.2 billion higher compared to spending on the
same quarter in the previous year of Afs 8.2 billion. Looking at the aggregate YTD execution level this year we
spend Afs 25.9 billion or 3 percent of GDP on goods and services, with an execution level of Afs 8.9 billion or
50.7 percent higher compared to the previous year, but still lower by almost Afs 2 billion compared to the YTD
allocated budget target.
87,099
96,777 111,699 Operating budget 18,513
20,827
19,791
77,422 87,437
97,289 (Afs million)
16,199 16,878 Actual
67,744 76,574 13,885 14,410 expenditure
58,066 67,704
57,623 Actual expenditure 11,570 12,203
48,389
38,711 48,084 9,256
8,057
29,033 40,198 6,942
6,738
19,355 28,947 4,628 5,620
19,820 4,016
9,678
10,123 AFMIS data extract 26 May 2012 2,314 2,091
1,535 - - - 107 676
AFMIS data extract 26 May 2012
Subsidies, Grants, Social Transfers Figure 3.4 Subsidies, grants and social transfers
Budget targets 14,604
This category includes pension payments to retired Subsidies, grants 13,387
Interest Payments
Interest payments are only a small proportion of the total operating expenditures of the Government given that
the Government has only a small amount of concessional loans. Such loans are mostly given to the Afghan
Government on concessional basis to help it to finance its development projects. This spending excludes
principal repayments; the budget for the interest payments was set at Afs 350 million in 1390, of which Afs 92
million is spent by the end of the fourth quarter, this is higher compared to actual spending in the previous year
of Afs 79.5 million (an increase of 15 percent).
Spending on interest payments in the 4th quarter is Afs 7.5 million, most of these payments were made to ADB
and Word Bank.
Spending on the acquisition of non-financial assets occurs mainly from the development budget. However, there is
also a small amount of expenditures on the acquisition of non-financial assets from the operating budget. Total
budget for Capital Expenditures (code 25) were around Afs 14.6 billion in 1390 budget, of which Afs 9 billion is
spent by the end of 4th quarter while these expenditures were around Afs 5.6 billion in the previous year (an
increase of over 60 percent). For detail information see table 1.1 on the 1390 expenditures.
The Afghanistan National Development Strategy (ANDS) is the Government strategy for development to reduce
poverty, accelerate economic growth and improve security and governance. The National Budget is aligned with
ANDS priorities. It has eight sectors which cover all the ministries and budgetary units.
Table 1.2 considers the operating budget expenditures at the same stage of 1389 and 1390 by ANDS sector and
the largest operating budget ministries. It also shows whether spending has increased or decreased for the major
economic codes.
Table 3.2 Operating Expenditures by Sector and Largest Minsitry (1389 and 1390 YTD)
T ota l Ope ra ting E xpe nditure s Compe nsa tion of Goods a nd Gross Acquisition Othe r
E mploye e s S e rvice s of N on fina ncia l E xpe nditure s (1)
a sse ts
In millions of Afgha nis 1389 1390 % Curre nt 1390 1389 1390 1389 1390 1389 1390 1389 1390
Qtr 4 Qtr 4 Cha nge a lloca te d YT D a s Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4
Actua l P re lim Budge t % of Actua l P re lim Actua l P re lim Actua l P re lim Actua l P re lim
YT D YT D 1389 (2) Budge t YT D YT D YT D YT D YT D YT D YT D YT D
T OT AL 110,452.8 149,293.6 35.2 155,943.1 95.7 86,474.0 111,698.6 17,158.5 25,855.5 1,589.2 2,691.7 5,231.1 9,047.8
T ota l S e curity 61,697.8 85,503.7 38.6 90,168.7 94.8 55,338.2 74,387.3 5,748.2 9,040.2 611.4 1,590.2 0.0 486.0
Ministry of Interior 28,230.0 37,321.7 32.2 37,725.8 98.9 25,860.0 32,273.7 1,983.0 3,615.6 387.1 946.5 0.0 486.0
Ministry of Defence 27,623.0 40,182.5 45.5 44,694.5 89.9 25,806.5 36,780.2 1,662.4 2,859.7 154.1 542.5 0.0 0.0
General Directorate of National Security 2,913.1 4,482.3 53.9 4,132.3 108.5 2,078.1 3,350.3 835.1 1,100.0 0.0 32.0 0.0 0.0
Ministry of Foreign Affairs 2,044.9 2,541.1 24.3 2,607.1 97.5 925.1 1,215.1 1,082.2 1,263.7 37.6 62.2 0.0 0.0
Other Ministries 886.8 976.1 10.1 1,008.9 96.7 668.6 768.0 185.5 201.1 32.7 6.9 0.0 0.0
Total Governance, Rule of Law and Human Rights 10,032.4 11,121.0 10.8 11,686.7 95.2 6,002.1 7,039.5 2,955.6 3,423.2 367.9 386.7 706.9 271.5
Legal Training Center 8.1 6.8 -15.0 6.9 99.8 3.8 5.0 1.6 1.9 2.7 0.0 0.0 0.0
Presidents Office 1,270.3 1,557.7 22.6 1,686.6 92.4 846.7 978.1 393.9 530.1 29.7 49.5 -0.0 0.0
Administrative Affairs 1,591.8 1,493.3 -6.2 1,442.6 103.5 333.1 499.6 494.7 577.5 58.1 149.5 705.9 266.7
Supreme Court 1,094.9 1,278.5 16.8 1,214.9 99.8 3.8 5.0 1.6 1.9 2.7 0.0 0.0 0.0
Ministry of Justice 1,738.7 1,610.7 -7.4 1,630.9 98.8 1,002.5 966.4 735.3 631.0 0.0 13.1 0.9 0.1
Other Ministries 4,328.7 5,173.9 -0.0 5,705.0 -399.0 3,812.2 4,585.4 1,328.6 1,680.8 274.7 174.5 0.1 4.7
Total Infrastructure and Natural Resources 3,064.6 4,951.7 61.6 5,327.5 92.9 1,523.0 1,809.3 1,234.0 2,692.5 307.6 449.8 -0.0 -0.0
Total Education 21,934.1 26,067.0 18.8 26,293.8 99.1 19,027.3 22,861.5 2,786.3 3,115.8 120.5 89.7 -0.0 -0.0
Ministry of Education 19,114.7 22,931.6 20.0 23,167.9 99.0 17,400.6 21,056.3 1,659.7 1,813.2 54.5 62.1 -0.0 -0.0
Ministry of Higher Education 1,850.3 2,119.2 14.5 2,101.7 100.8 1,104.1 1,228.4 718.8 878.1 27.3 12.7 -0.0 -0.0
Other Ministries 969.1 1,016.2 -15.7 1,024.2 -100.7 522.5 576.7 407.8 424.5 38.7 15.0 0.0 0.0
Total Health 2,067.2 2,179.8 5.4 2,712.7 80.4 1,342.4 1,691.3 712.1 482.8 12.6 5.7 0.0 -0.0
Ministry of Public Health 2,067.2 2,179.8 5.4 2,712.7 80.4 1,342.4 1,691.3 712.1 482.8 12.6 5.7 0.0 -0.0
Total Agriculture and Rural Development 1,623.3 2,540.6 56.5 2,797.6 90.8 1,187.1 1,357.8 410.1 393.0 26.1 36.4 -0.0 753.4
Ministry of Agriculture 1,061.5 1,899.5 79.0 2,123.9 89.4 849.2 964.0 201.1 176.5 11.2 5.7 -0.0 753.4
Other Ministries 561.8 641.1 -22.4 673.7 1.4 337.9 393.8 209.1 216.5 14.9 30.8 0.0 0.0
Total Social Protection 5,667.8 9,176.0 61.9 9,131.4 100.5 817.1 1,130.6 602.4 757.3 60.9 61.1 4,187.4 7,227.0
Ministry of Martyrs, Disabled and Social Affairs 4,925.8 8,316.0 68.8 8,246.8 100.8 404.5 638.7 303.1 414.3 30.9 36.0 4,187.4 7,227.0
Other Minisitries 742.0 860.0 -6.9 884.6 -0.4 412.6 491.9 299.3 343.0 30.0 25.1 0.0 0.0
Total Economic Gov. and Private Sector Devel't 4,365.6 7,754.0 77.6 7,964.1 97.4 1,236.9 1,416.6 2,709.7 5,950.7 82.2 72.1 336.7 314.6
Ministry of Finance 3,290.1 5,593.4 70.0 5,575.0 100.3 853.1 972.5 2,068.0 4,260.6 32.3 45.8 336.7 314.6
Other Minisitries 1,075.5 2,160.6 7.6 2,389.1 -3.0 383.8 444.1 641.7 1,690.1 49.9 26.3 0.0 0.0
Source: FPU using AFMIS data downloaded on the 26 May 2012
(1) Interest, and Subsidies and Transfers
(2) For individual Ministries (not the total budget), allocated operating Budget may not equal the approved budget, as funds are allocated from contingency reserve during the year. Allocated budget for the
development budget is the same as the latest approved budget. Total current allocated budget is the approved budget.
The largest spending sectors for the operating budget in 1390 is the Security Sector, Education sector and
Governance sector, and some other minor spending were also done by the other sectors.
Quarterly Fiscal Bulletin Page | 19 Q4 - 1390
In 1390 budget, Afs 90 billion was allocated to Security Sector of which Afs 85.5 billion is spent on the YTD
basis constituting 94 percent of the total allocated budget, this is higher compared to YTD spending of Afs 61.7
billion in the previous year (an increase of 38.6 percent), this increase is caused by the increase in security sector
tashkeel, reaching its peak of 352,000 by the mid 1390. Wages grow by 34.5 percent from Afs 55.3 billion in
1389 to Afs 74.4 billion in 1390.
The second largest sector in the operating budget is the Education Sector, the budget in 1390 for this sector was
around Afs 26.3 billion while over 99 percent of the total allocated budget was spent by the end of 4th quarter, an
Afs 4.2 billion increase (by 19.2 percent) over the 1389 budget. This increase is occurring mainly in wages of
Afs 3.9 billion and some minor increases for the payment on goods and services. Governance is the third largest
sector in the operating budget; in 1390 Afs 11.6 billion were allocated to Governance. Spending of over 95
percent of the total allocated budget occurred in 1390, this is Afs 11.1 billion higher than what was actually
spend in the previous year by Afs 1.1 billion.
The remaining Afs 22.5 billion were allocated to other sectors, the budget for the social protection was Afs 9.1
billion but spending were higher with 9.2 billion more than the allocated amount. This is 61 percent higher than
what was actually spent in 1389. Spending for the other sectors up to the end of 4th quarter for Agriculture,
Health, Economics and infrastructure sectors were Afs 2.5 billion, Afs 2.2 billion, Afs 7.8 billion and Afs 5
billion respectively.
Development budget expenditures in fourth quarter 1390 were Afs 20.3 billion or 38% of the total development
budget for the year in fourth quarter. During third quarter of 1390, development expenditures raised by 30% or
about Afs 4.7 billion compared to the Afs 15.6 billion spent in during the same period of the last year. The YTD
development expenditures were Afs 52.6 billion in fourth quarter 1390, around 19% higher compared to the
development expenditures during fourth quarter, when compared to the same period last year. While, the
development budget execution rate in this period was only 52% or 6% of anticipated GDP for the fiscal year
1390. The relatively higher development budget execution is align with the governments commitment to
increase the absolute amount of spending each year by 10 percent as stated in the PFM Roadmap.
Figure 3.5 Goods and services, Afs millions Figure 3.6 - Acquisition of non-financial assets by quarter,
YTD Alloacted Budget 39,915 Afs millions, 1388- 1390
Goods & Services 36,589
Land and Buildings Machinery and Equipment
12,000
33,262
Table 3.3 considers the operating budget expenditures at the same stage of 1389 and 1390 by ANDS sector and
largest development budget ministries.
Table 3.3 Development Expenditures by Sector and largest Ministry (1389 and 1390 YTD)
1389 1389 1389 1390 1390 1390 1390 1390 1390 Compa rison to
Approve d Qtr 4 YT D . Approve d Qtr 4 YT D . U nspe nt % of 1389 YT D
In millions of Afgha nis
Budge t Actua l a s % of Budge t Pre lim a s % of Budge t T ota l
YT D Budge t YT D Budge t U nspe nt Cha nge % Incre a se
T OT AL 111,900.2 45,894.8 41.0 102,336.5 52,579.9 51.4 49,756.6 100.0 14.6 213.8
Total Infrastructure and Natural Resources 48,067.6 20,879.0 43.4 44,482.4 21,906.4 49.2 22,576.0 45.4 1,027.4 4.9
Ministry of Public Works 23,514.1 12,112.5 51.5 18,123.4 9,938.3 54.8 8,185.0 16.5 -2,174.2 -17.9
Ministry of Transport and Aviation 1,486.3 495.3 33.3 1,456.4 864.1 59.3 592.3 1.2 368.9 74.5
Ministry of Energy and Water 14,365.7 3,903.1 27.2 12,394.5 6,428.9 51.9 5,965.6 12.0 2,525.8 64.7
Water Supply and Canalization Corporation 0.0 0.0 N/A 901.9 63.0 7.0 839.0 1.7 63.0 N/A
Ministry of Communication 1,679.6 1,411.0 84.0 1,817.1 1,123.5 61.8 693.6 1.4 -287.5 -20.4
Geodesy and Cartography Office 28.5 26.4 92.6 164.7 0.0 0.0 164.7 0.3 -26.4 -100.0
Other Ministries 6,993.4 2,930.8 41.9 9,624.4 3,488.7 36.2 6,135.7 12.3 557.9 4.1
Total Agriculture and Rural Development 27,329.3 9,341.6 34.2 23,453.8 13,940.0 59.4 9,513.8 19.1 4,598.4 49.2
Ministry of Agriculture 5,768.3 1,806.5 31.3 4,714.1 2,649.7 56.2 2,064.4 4.1 843.2 46.7
Ministry of Rural Rehabilitation and Development 21,139.0 7,432.3 35.2 18,500.1 11,240.0 60.8 7,260.1 14.6 3,807.7 51.2
Other Ministries 422.0 102.7 24.3 239.6 50.3 21.0 189.3 0.4 -52.4 -48.7
Total Education 12,327.3 4,891.1 39.7 12,001.5 5,550.1 46.2 6,451.3 13.0 659.0 13.5
Ministry of Education 9,986.8 4,097.3 41.0 9,514.3 4,614.2 48.5 4,900.0 9.8 516.9 12.6
Other Ministries 2,340.4 793.8 33.9 2,487.2 935.9 37.6 1,551.3 3.1 142.1 0.9
Total Economic Gov. and Private Sector Devel't 5,678.9 2,208.3 38.9 5,494.1 3,415.9 62.2 2,078.2 4.2 1,207.6 54.7
Ministry of Finance 3,997.0 1,819.7 45.5 3,508.3 2,860.0 81.5 648.3 1.3 1,040.3 57.2
Other Minisitries 1,681.8 388.6 23.1 1,985.8 555.9 28.0 1,429.9 2.9 167.3 -2.5
Total Health 7,316.0 4,333.4 59.2 7,817.2 4,854.5 62.1 2,962.7 6.0 521.2 12.0
Ministry of Public Health 7,316.0 4,333.4 59.2 7,817.2 4,854.5 62.1 2,962.7 6.0 521.2 12.0
Total Governance, Rule of Law and Human Rights 4,233.7 3,310.4 78.2 3,405.1 1,746.6 51.3 1,658.5 3.3 -1,563.8 -47.2
Independent Directorate of Local Governance 1,476.6 8.1 0.5 1,223.9 -1,830.9 -149.6 3,054.8 6.1 -1,839.0 -22,832.9
Other Minisitries 2,757.1 3,302.4 119.8 2,181.2 3,577.5 164.0 -1,396.3 -2.8 275.2 22,785.7
Total Social Protection 1,110.2 489.1 44.1 1,119.5 599.2 53.5 520.4 1.0 110.0 22.5
Total Security 993.3 441.9 44.5 1,038.6 567.2 54.6 471.4 0.9 125.2 28.3
Total Unclassified 4,843.9 0.0 0.0 3,524.4 0.0 0.0 3,524.4 7.1 0.0 N /A
Source: FPU using AFMIS data downloaded on the 26 May 2012
The Infrastructure and Natural Resources sector is the largest sector in the development budget in the year
1390. Total budget for this sector in the fiscal year 1390 was allocated Afs 44.4 billion. However, total year to
date expenditures in this sector was almost half of its budget (Afs 22 billion) with 49 percent of execution rate.
This shows an increase of 5.9 percentage points improvement in the budget execution when compared to the
same period last year (Afs 20.8 billion were spent in this sector). On the other hand during 4 th quarter 1390
expenditures in this sector was remarkable as shows 35 percent increases as compared to the 4th quarter 1389.
Expenditures in this sector included the design, survey and construction of highways, electric power generators,
roads, communication other related projects, and some of key ministries in this sector are as below.
Development budget for the Ministry of Public Works in 1390 was Afs 18.1 billion or 41 percent of
total approved budget for this sector. Total year to date development expenditures by ministry of public
works were about Afs 10.0 billion or more than half of its budget. However, 4th quarter expenditures were
only Afs 5.0 billion which shows an increase of 32 percent when compared over the same period last year
(Afs 3.8 billion in 4th quarter 1389).
Ministry of Energy & Water total development budget was Afs 12.4 billon which count for 12 percent of
total development budget for the fiscal year 1390, this year budget was allocated less for this ministry as
compared to the past year, this was mainly due to lack of capacity, poor financial planning and lower
Quarterly Fiscal Bulletin Page | 22 Q4 - 1390
execution rate over the past few years. However, this year the budget execution by this ministry was
satisfactory, they spend more than 50% of its allocated budget (Afs 6.4 billion) during the year.
Ministry of Information & Communication Technology budget was Af 1.8 billion for 1390 from which
the year to date spending were Afs 1.12 billion with almost 62 percent execution rate, whilst during the
4th quarter 1390 the development spending was only Afs 72.3 million and in the same period in 1389 this
was Afs 1.2 billion which shows a big difference
The Agriculture and Rural Development sector was second largest sector in the development budget which
covers 22 percent of total development budget for the year. Total year to date development spending in this
sector was Af 13.9 billion or about 61 percent of allocated budget. This rose up to 49 percent compared to the
year to date spending in 4th quarter 1389.
The Minsitry of Rural Rehabilitation and Development is the largest ministry in this sector which spent
almost 80 percent of the executed budget (Afs 11.2 billion out of Afs 13.9 billion), however, the year to
date execution rate for this ministry was over 60 percent which is almost double as compared to the year
to date spending in 1389 (Afs 7.4 billion), while during 4th quarter 1389 development spending was 28
percent higher as compared to 4th quarter 1390.
The year to date expenditures in the Ministry of Agriculture were Afs 2.6 billion or 62.7 percent of its
total allocated budget for the year, meanwhile year to date spending in the same period in 1389 was only
Afs 1.8 billion, which is 800 million lower as compared to 1391.
The Education sector is the third largest sector which cover almost 11 percent of total development budget.
Total year to date development expenditures in 1390 were Afs 5.6 billion which is slightly higher when
compared to the same period in 1389 (Afs 4.9 billion). The budget execution rate during 1390 in this sector was
improved and it increased by 7.5 percentage points (from 39.7 to 47.2).
The Health sector development budget was Afs 7.7 billion in the fiscal year 1390, however, development
expenditures were Afs 4.8 billion with budget execution rate of almost 63 percent during the year which give a
green signal in the development project implementation and improvement. During 4th quarter 1390 development
spending were Afs 1.8 billion while it was only Afs 1.6 billion in 4th quarter 1389.
Referring to the following table 4.1 government deficit during 4th quarter 1390 was Afs 14.3 billion whilst this
was Afs 8.4 billion in 3rd quarter 1390, there is usually higher operating deficit in the fourth quarter due to higher
disbursement and net acquisition of non financial assets by end of the 4th quarter. The YTD balance net deficit of
Afs 10.5 billion compared to a net surplus of Afs 3.7 billion during third quarter 1390.
In the 4th quarter 1390, the TSA almost stood at Afs 40.0 billion compared to Afs 37.0 billion in the third
quarter 1390, this rose by 8% over the last quarter. whereas, the liabilities has jumped up to Afs 41 billion
when compared to Afs 37.0 billion to the same period last quarter, this was mainly due to increase public
sector deficit.
The outlook for 2012 is challenging, but growth should still accelerate. The global and regional economic
environment is difficult, with rising oil prices and occasional trade disruptions with neighboring countries.
Domestically, the low level of security and the impact of the ongoing military withdrawal will weigh on
activity. On the other hand, agriculture is expected to rebound after poor harvests in the last two years. On
balance, economic growth is projected to reach about 7 percent in 2012 and inflation will be contained to
around 9 percent by end-2012. Exports are likely to be sluggish, while fuel prices will push up imports.
The resulting large trade deficit will continued to be covered by donor support.
The 2012 budget envisages domestic revenue collection to increase to 11.7 percent of GDP compared to
11.1 percent of GDP during the same period in 2011. See Chart below for expenditure breakdowns.
Chart 1. Revenue, Total Expenditures and Financing Gap
1
This note is primarily based on the paper the titled, Annex (II): Fiscal Gap: 2012-2025, presented by the Government of
Afghanistan at the Tokyo Donor Conference, held on 8 July 2012. This paper was prepared by the Fiscal Policy and Economic
Analysis Directorate (MoF) in consultation with other departments in MoF, as well as the IMF and World Bank.
Quarterly Fiscal Bulletin Page | 25 Q4 - 1390
It is also expected that the fiscal situation in the period 2012-25 as shown in the financing gap excluding
grants will improve by 74.2 percent of GDP. This is due to the fact that the revenues from the extractive
industries will gradually come on stream and contribute an additional 1.9 percent of GDP over the period.
Chart 2. Afghanistan Key Macroeconomic variables
In a recent Afghanistan Country Report, the IMF has estimated that the reduction in foreign presence
affects the Afghan economy through the following transmission channels:2
Income effects would come from lower aggregate demand are a function of lower local
expenditure of foreign civilian organizations and staff; the associated decline in local procurement;
and lower numbers of local employees of foreign civilian organizations.
The fiscal impact will mainly result from higher on-budget security spending from the transfer of
Afghan National Security Forces (ANSF) expenditures to the operating budget under the Law and
Order Trust Fund Afghanistan (LOTFA) and the NATO Training Mission Afghanistan (NTM-A),
higher on-budget operations and maintenance spending, and lower revenues reflecting the adverse
impact on growth. In addition, expenditure for operations, equipment, and maintenance are likely
to be substantially higher as projects are brought on budget as part of the transformation.
The external sector will be affected by a possible reduction or reversal of the terms- of-trade
effects of foreign presence Dutch disease; and trade balance effects resulting from lower imports
by foreign civilian missions.
2
See IMF Country Report No. 11/330, p.88 onwards.
Quarterly Fiscal Bulletin Page | 26 Q4 - 1390
Labor market effects could include higher unemployment, due to lay-offs of local staff by foreign
civilian organizations; lower employment in sectors closely linked to the presence of foreign
entities; and, as a result, downward pressure on local wages.
The local content of that expenditure is however small and the effect of its withdrawal on the economy
could be to the extent offset by an increase in military spending by Afghanistan3. It is unlikely, however,
that the offset from the planned increase in security spending by the Afghan government will be sufficient,
which means that there will likely be a negative effect on the growth rate of the Afghan economy and on
imports. That effect may be felt differently by regions, sectors, and labour markets. The build up of ISAF
forces in recent years clearly boosted the growth of the economy (by as much as 2.3% according to the
IMF). Their withdrawal can be expected to have the opposite effect soon, though not of the same
magnitude for the reason given above.
There is also a timing issue. While the size of Afghan security forces is reaching its peak in 2012, the
gradual withdrawal of foreign troops will begin to take place in 2013-14. This means that the Afghan
economy is already benefiting from the increase in domestic defence expenditure while the effect of the
ISAF withdrawal is still to come.
In addition growth in the agriculture sector which represents about one-fourth of GDP and could
sometimes be quite volatile, may also off-set (or deepen) these negative impacts on the economy during
the transition period. However, the negative features of the transition will be dampened by the start of
operations at the two mining sites of Aynak and Hajigak, which could add close to one percentage point to
the growth rate of GDP by 2016.
5.4 Conclusion
There are also several economic risks over the medium term that the Government will need to monitor and
closely address during the Transition and beyond:
The gradual drawdown of foreign military resources in the run up to 2014 will pose expenditure
pressures. Additionally, these expenditures are a source of significant foreign exchange inflows.
The withdrawal would likely put downward pressure on the exchange rate.
The anticipated gradual reduction in Afghan National Army (ANA) and Afghan National Police
(ANP) forces from 2016 to 2021 would have an adverse impact on both the economy and the
Governments finances. The impact on the economy would include various facets including
increased unemployment that would require transfers and increase pressure on the budget for
compensation to the laid-off forces.
Donor contributions are a significant source of financing for both the operating and development
budgets through the off-budget. Reduced off-budget expenditures would increase the financing
need for development projects. In addition, the Provincial Reconstruction Teams (PRTs) serve as a
3
As an example, if it is assumed that the local content of the foreign troops total spending is only 9 per cent, while that of
Afghan security forces is 90 per cent, the effect of an overall reduction in spending of US$ 100 billion by the former on
domestic expenditure would be fully offset by an increase in spending of US$ 10 billion by the latter.
Quarterly Fiscal Bulletin Page | 27 Q4 - 1390
key player for the social sector development and require services that generate economic multiplier
for the communities.
Projected revenues from mineral deposits, especially from the Aynak and Hajigak mines will
provide fiscal cushion over the medium term. However, these revenues remain contingent on
significant private investment in the extractive and transportation sectors. These are further
contingent upon the security environment.
Finally, absorbing the government assets created over 10 years of on-budget and off-budget
spending have created a massive build-up of infrastructure that would be a huge financial burden
on the Government. The Government will need to make hard choices about the infrastructure it
can absorb and maintain. The Government will need to take aggressive measures to control
spending and raise domestic revenues to close the worrisome fiscal gap.
D OMEST IC R EVEN U ES (2) (3) 22,691.6 80,384.3 11.0 23,450.3 23,843.3 24,146.0 27,909.9 99,349.4 11.4 18,965.2 23.6 93,663.8 6.1 106.1
11 T a x R e ve nue s 11,141.9 38,697.6 5.3 9,377.8 10,540.4 11,891.4 13,025.5 44,835.1 5.1 6,137.5 15.9 46,194.5 -2.9 97.1
111 Fixed Taxes 2,353.1 9,080.9 1.2 2,296.1 2,503.8 2,534.0 2,710.8 10,044.7 1.1 963.8 10.6 12,314.6 -18.4 81.6
112 Income Taxes 3,134.7 10,293.8 1.4 2,844.3 2,577.4 3,460.0 3,675.5 12,557.2 1.4 2,263.3 22.0 11,878.2 5.7 105.7
113 Property Taxes 82.2 245.4 0.0 103.2 86.2 80.9 103.0 373.3 0.0 127.9 52.1 329.8 13.2 113.2
114 Sales Taxes 4,712.0 16,302.5 2.2 3,609.3 4,583.8 4,849.6 5,563.0 18,605.6 2.1 2,303.1 14.1 18,996.0 -2.1 97.9
116 Other Taxes 653.2 2,152.2 0.3 388.4 634.0 853.9 833.0 2,709.3 0.3 557.1 25.9 1,962.0 38.1 138.1
117 Tax Penalties and Fines 206.6 622.7 0.1 136.5 155.4 113.0 140.1 545.0 0.1 -77.7 -12.5 713.8 -23.6 76.4
12 Customs D uty, Import T a xe s 7,116.7 27,623.2 3.8 7,849.5 8,058.1 7,769.5 6,869.3 30,546.4 3.5 2,923.2 10.6 32,542.6 -6.1 93.9
13 N on T a x R e ve nue 3,437.4 11,521.8 1.6 5,721.4 4,338.5 3,542.4 6,548.5 20,150.9 2.3 8,629.1 74.9 12,144.3 65.9 165.9
131 Income from Capital Property 57.4 281.1 0.0 2,480.4 68.2 115.3 111.7 2,775.7 0.3 2,494.6 887.5 370.9 648.3 748.3
132 Sales of Goods and Services 1,477.5 4,506.4 0.6 1,266.3 1,165.2 1,226.4 3,715.1 7,373.0 0.8 2,866.6 63.6 4,150.4 77.6 177.6
133 Administrative Fees 1,758.0 6,354.5 0.9 1,729.5 2,881.3 2,012.4 2,261.5 8,884.7 1.0 2,530.2 39.8 7,226.6 22.9 122.9
134 Royalties 17.1 40.4 0.0 41.7 67.3 25.2 145.3 279.5 0.0 239.2 592.4 123.4 126.5 226.5
135 Non Tax Fines and Penalties 127.4 339.3 0.0 191.2 128.2 121.9 229.9 671.2 0.1 331.9 97.8 273.0 145.8 245.8
136 Extractive Industry 0.0 0.0 0.0 Extractive
12.3 Industry
28.2 41.2 85.0 166.7 0.0 136 166.7 N/A Extractive
0.0 Industry
0.0 122.6
14 Misce lla ne ous R e ve nue 317.0 733.6 0.1 -17.3 217.0 189.3 442.6 831.7 0.1 98.1 13.4 1,169.3 -28.9 71.1
17 Socia l Contributions 678.7 1,808.1 0.2 518.9 689.2 753.4 1,023.9 2,985.4 0.3 1,177.2 65.1 1,613.2 85.1 185.1
GR AN T S (1) 21,016.5 79,988.5 11.0 21,893.1 18,621.4 21,674.3 29,831.6 92,020.4 10.5 12,031.9 15.0
191 Foreign Governments 16,663.1 59,346.3 8.1 17,733.6 14,296.6 13,712.8 21,390.0 67,132.8 7.7 7,786.5 13.1
192 International Organisation 3,981.4 19,954.2 2.7 4,159.5 4,182.1 7,906.6 8,424.7 24,672.9 2.8 4,718.7 23.6
193 Other Government Units 372.1 688.0 0.1 0.0 142.8 54.9 17.0 214.6 0.0 -473.3 -68.8
T OT AL OPER AT IN G BU D GET R EVEN U E 37,861.3 134,850.1 18.5 40,812.1 37,473.5 36,587.7 44,885.3 159,758.5 18.3 24,908.5 18.5 99.6
Domestic Revenues 22,691.6 80,384.3 11.0 23,450.3 23,843.3 24,146.0 27,909.9 99,349.4 11.4 18,965.2 23.6 93,663.8 6.1 106.1
as percentage of total 59.9 59.6 57.5 63.6 66.0 62.2 62.2 76.1
External Grant Support 15,169.7 54,465.8 7.5 17,361.8 13,630.2 12,441.7 16,975.4 60,409.1 6.9 5,943.3 10.9 90.6
as percentage of total 40.1 40.4 42.5 36.4 34.0 37.8 37.8 23.9
Source: FPU using AFMIS data downloaded on the 26 May 2012
1. Actual figures are not comparable to the development/ integrated budget grants or balances shown in budget documentation, as grants/ balance in budget documentation also includes loans. Loans are shown as a financing item in above table.
2. Revenues exclude proceeds from the sale of fixed assets (150), and loans (18). These items are included under financing.
3. In the published budget document, Afs 13.2 billion in domestic revenues are allocated to the development budget in 1390. In order to ensure comparability with actuals, all domestic revenues shown under the development budget in the published budget
document have been re-allocated to the operating budget in the above table.
2* T OT AL N ET EXPEN D IT U R ES 53,632.8 154,269.1 21.1 54,203.4 72,014.4 201,902.2 23.1 47,633.2 30.9
2-25 R ECU R R EN T EXPEN D IT U R ES 42,163.9 125,090.1 17.1 43,717.6 59,362.9 167,511.1 19.2 N /A 197,628 84.8 42,421.0 33.9
21 Compe nsa tion of Employe e s 28,141.1 86,474.0 11.8 28,490.3 35,124.4 111,698.6 12.8 109,884 114,553 97.5 25,224.6 29.2
of which ope ra ting budge t 28,141.1 86,474.0 11.8 28,490.3 35,124.4 111,698.6 12.8 109,884.0 114,553 97.5 25,224.6 29.2
211-3 Wages and Salaries 27,962.7 85,860.5 11.8 28,267.1 34,901.8 110,881.9 12.7 25,021.4 29.1
214-5 Social Benefits 178.4 613.5 0.1 223.1 222.5 816.7 0.1 203.2 33.1
22 U se of Goods a nd Se rvice s 13,297.8 32,968.7 4.5 13,188.6 20,672.8 46,764.7 5.3 N /A 68,121 68.6 13,796.0 41.8
of which ope ra ting budge t 8,204.4 17,158.5 2.4 7,672.4 11,445.1 25,855.5 3.0 22,960.3 28,114 92.0 8,697.0 50.7
221 Travel 476.6 1,310.3 0.2 554.2 595.4 1,764.8 0.2 454.5 34.7
222 Communications 258.5 710.0 0.1 223.3 374.7 900.7 0.1 190.7 26.9
223 Contracted Services 5,321.0 13,634.6 1.9 3,705.4 9,589.0 17,845.6 2.0 4,211.0 30.9
224 Repairs and Maintenance 1,124.6 2,226.4 0.3 1,276.9 2,492.7 4,546.8 0.5 2,320.4 104.2
225 Utilities 1,270.0 2,719.2 0.4 527.9 2,467.2 4,094.6 0.5 1,375.4 50.6
226 Fuel 631.8 1,570.9 0.2 708.1 772.9 2,335.0 0.3 764.1 48.6
227-9 Other Use of Goods and Services 4,215.3 10,797.3 1.5 6,192.8 4,381.0 15,277.1 1.7 4,479.8 41.5
23 Inte re st (1) - ope ra ting budge t 7.3 79.5 0.0 39.7 7.5 92.0 0.0 350.0 350 26.3 12.5 15.7
24 Socia l T ra nsfe rs - ope ra ting budge t 717.7 5,567.9 0.8 1,999.0 3,558.2 8,955.8 1.0 14,604.0 14,604 61.3 3,388.0 60.8
242 Subsidies 0.0 18.0 0.0 0.0 1,099.6 1,099.6 0.1 1,081.6 6016.7
245 Grants 56.1 167.2 0.0 5.5 17.4 51.5 0.0 -115.7 -69.2
247 Social Security 1,121.2 4,732.0 0.6 1,936.7 2,315.3 7,429.6 0.8 2,697.6 57.0
248-9 Other Social Transfers -459.6 650.8 0.1 56.7 126.0 375.2 0.0 -275.6 -42.3
2-25 R ECU R R EN T EXPEN D IT U R ES 37,070.5 108,863.6 14.9 38,201.4 50,135.2 146,601.9 16.8 147,798.3 151,922.5 96.5 37,738.3 34.7
21 Compe nsa tion of Employe e s 28,141.1 86,474.0 11.8 28,490.3 35,124.4 111,698.6 12.8 109,884.0 114,553.0 97.5 25,224.6 29.2
211-3 Wages and Salaries 27,962.7 85,860.5 11.8 28,267.1 34,901.8 110,881.9 12.7 25,021.4 29.1
214-5 Social Benefits 178.4 613.5 0.1 223.1 222.5 816.7 0.1 203.2 33.1
22 U se of Goods a nd Se rvice s 8,204.4 17,158.5 2.4 7,672.4 11,445.1 25,855.5 3.0 22,960.3 28,113.6 92.0 8,697.0 50.7
221 Travel 410.1 1,142.3 0.2 435.4 431.7 1,407.2 0.2 264.9 23.2
222 Communications 212.4 614.5 0.1 176.9 299.6 731.0 0.1 116.5 19.0
223 Contracted Services 527.3 769.8 0.1 61.6 1,615.9 1,796.5 0.2 1,026.7 133.4
224 Repairs and Maintenance 1,028.9 2,038.3 0.3 1,192.1 1,887.4 3,790.0 0.4 1,751.7 85.9
225 Utilities 1,267.9 2,714.9 0.4 525.2 2,445.9 4,069.2 0.5 1,354.4 49.9
226 Fuel 606.9 1,512.9 0.2 699.3 727.6 2,262.8 0.3 749.9 49.6
227-9 Other Use of Goods and Services 4,151.0 8,365.9 1.1 4,581.8 4,037.0 11,798.8 1.3 3,433.0 41.0
23 Inte re st (1) 7.3 79.5 0.0 39.7 7.5 92.0 0.0 350.0 134.7 68.3 12.5 15.7
24 Socia l T ra nsfe rs 717.7 5,151.6 0.7 1,999.0 3,558.2 8,955.8 1.0 14,604.0 9,121.2 98.2 3,804.3 73.8
242 Subsidies 0.0 1.7 0.0 0.0 1,099.6 1,099.6 0.1 1,097.9 66,539.5
245 Grants 56.1 167.2 0.0 5.5 17.4 51.5 0.0 -115.7 -69.2
247 Social Security 1,121.2 4,732.0 0.6 1,936.7 2,315.3 7,429.6 0.8 2,697.6 57.0
248-9 Other Social Transfers -459.6 250.8 0.0 56.7 126.0 375.2 0.0 124.4 49.6
248 Social Assistance 13.0 616.3 0.1 58.3 86.4 271.7 0.0 -344.5 -55.9
249 Advance Subsides, Grants -472.6 -365.5 -0.1 -1.5 39.6 103.5 0.0 469.0 -128.3
2-25 R ECU R R EN T EXPEN D IT U R ES 5,093.4 16,226.5 2.2 5,516.2 20,909.2 2.4 N /A 45,705.2 45.7 4,682.6 28.9
Compe nsa tion of Employe e s 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 N /A
211-3 Wages and Salaries 0.0 0.0 0.0 0.0 0.0 0.0
211 Wages and Salaries in Cash 0.0 0.0 0.0 0.0 0.0 0.0
212 Wages and Salaries in Kind 0.0 0.0 0.0 0.0 0.0 0.0
213 Wages and Salary Advance 0.0 0.0 0.0 0.0 0.0 0.0
214-5 Social Benefits 0.0 0.0 0.0 0.0 0.0 0.0
U se of Goods a nd Se rvice s 5,093.4 15,810.2 2.2 5,516.2 20,909.2 2.4 N /A 40,007.1 52.3 5,099.0 32.3
221 Travel 66.5 168.1 0.0 118.8 357.7 0.0 189.6 112.8
222 Communications 46.1 95.5 0.0 46.4 169.7 0.0 74.2 77.7
223 Contracted Services 4,793.7 12,864.8 1.8 3,643.8 16,049.2 1.8 3,184.3 24.8
224 Repairs and Maintenance 95.7 188.1 0.0 84.7 756.9 0.1 568.8 302.4
225 Utilities 2.1 4.3 0.0 2.7 25.4 0.0 21.1 490.9
226 Fuel 25.0 58.0 0.0 8.8 72.2 0.0 14.1 24.4
227-9 Other Use of Goods and Services 64.3 2,431.4 0.3 1,611.0 3,478.3 0.4 1,046.9 43.1
23 Inte re st (1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 215.3 0.0 0.0 N /A
24 Socia l T ra nsfe rs 0.0 416.3 0.1 0.0 0.0 0.0 0.0 5,482.8 0.0 -416.3 -100.0
242 Subsidies 0.0 16.3 0.0 0.0 0.0 0.0 -16.3 -100.0
245 Grants 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
247 Social Security 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
248-9 Other Social Transfers 0.0 400.0 0.1 0.0 0.0 0.0 -400.0 -100.0
Se curity 21,259.3 62,139.7 21,382.9 30,561.9 86,070.8 89,355.0 91,207.3 94.4 23,931.1 38.5
Operating Budget 21,079.1 61,697.8 21,304.4 30,132.7 85,503.7 88,316.4 90,168.7 94.8 23,805.9 38.6
Development Budget 180.1 441.9 78.5 429.3 567.2 1,038.6 1,038.6 54.6 125.2 28.3
T ota l Gove rna nce , R ule of La w a nd H uma n R ights 3,534.8 11,465.8 2,915.7 3,754.4 12,867.6 13,669.2 14,666.2 87.7 1,401.8 12.2
Operating Budget 2,997.7 8,155.3 2,446.3 3,128.4 11,121.0 10,264.1 11,686.7 95.2 2,965.6 36.4
Development Budget 468.4 3,310.4 469.4 626.0 1,746.6 3,405.1 3,405.1 51.3 -1,563.8 -47.2
T ota l Infra structure a nd N a tura l R e source s 8,676.2 23,805.3 7,352.0 12,024.3 26,858.1 48,304.8 49,809.9 53.9 3,052.8 12.8
Operating Budget 1,289.7 2,926.3 1,526.9 2,039.1 4,951.7 3,822.3 5,327.5 92.9 2,025.4 69.2
Development Budget 7,386.5 20,879.0 5,825.1 9,985.2 21,906.4 44,482.4 44,482.4 49.2 1,027.4 4.9
T ota l Educa tion 8,494.2 26,825.2 7,745.4 11,091.5 31,617.1 37,092.0 38,295.3 82.6 4,791.9 17.9
Operating Budget 7,829.7 21,934.1 6,380.0 8,626.1 26,067.0 25,090.5 26,293.8 99.1 4,132.9 18.8
Development Budget 664.5 4,891.1 1,365.3 2,465.3 5,550.1 12,001.5 12,001.5 46.2 659.0 13.5
T ota l H e a lth 2,386.4 6,400.5 1,762.1 2,587.9 7,034.3 10,480.8 10,529.9 66.8 633.8 9.9
Operating Budget 755.8 2,067.2 505.8 762.0 2,179.8 2,663.6 2,712.7 80.4 112.6 5.4
Development Budget 1,630.6 4,333.4 1,256.2 1,825.9 4,854.5 7,817.2 7,817.2 62.1 521.2 12.0
T ota l Agriculture a nd R ura l D e ve lopme nt 4,614.7 10,964.9 5,542.1 4,468.4 16,480.6 25,222.0 26,251.3 62.8 5,515.7 50.3
Operating Budget 499.6 1,623.3 468.2 1,277.9 2,540.6 1,768.2 2,797.6 90.8 917.3 56.5
Development Budget 4,115.2 9,341.6 5,074.0 3,190.5 13,940.0 23,453.8 23,453.8 59.4 4,598.4 49.2
T ota l Socia l Prote ction 1,314.7 6,156.9 2,583.2 3,203.3 9,775.2 2,886.1 10,251.0 95.4 3,618.2 58.8
Operating Budget 1,090.2 5,667.8 2,384.2 2,982.6 9,176.0 1,766.6 9,131.4 100.5 3,508.2 61.9
Development Budget 224.5 489.1 199.0 220.7 599.2 1,119.5 1,119.5 53.5 110.0 22.5
T ota l Economic Gove rna nce a nd Priva te Se ctor D e ve lopme nt 3,354.8 6,573.8 4,732.8 4,366.5 11,169.8 9,454.0 13,458.2 83.0 4,596.0 69.9
Operating Budget 2,471.1 4,365.6 3,768.3 2,766.6 7,754.0 3,959.9 7,964.1 97.4 3,388.4 77.6
Development Budget 883.7 2,208.3 964.5 1,599.9 3,415.9 5,494.1 5,494.1 62.2 1,207.6 54.7
T ota l U ncla ssifie d 0.0 0.0 0.0 0.0 0.0 21,815.8 3,524.4 0.0 0.0 N /A
Operating Budget 0.0 0.0 0.0 0.0 0.0 18,291.4 0.0 - 0.0 N/A
Development Budget 0.0 0.0 0.0 0.0 0.0 3,524.4 3,524.4 0.0 0.0 N/A
Source: FPU using AFMIS data downloaded on the 26 May 2012
(1) For individual Ministries (not the total budget), allocated operating Budget may not equal the approved budget, as funds are allocated from contingency reserve during the year. Allocated budget
for the development budget is the same as the latest approved budget.
26 Ministry of Inte rior 10,237.5 28,465.6 8,861.1 14,091.2 37,451.0 37,963.8 37,963.5 98.6 8,985.4 31.6
Operating Budget 10,184.6 28,230.0 8,833.5 14,007.0 37,321.7 37,726.1 37,725.8 98.9 9,091.7 32.2
Development Budget 52.9 235.6 27.6 84.2 129.3 237.7 237.7 54.4 -106.3 -45.1
22 Ministry of D e fe nce 8,889.1 27,671.9 10,159.6 13,875.3 40,189.7 43,492.6 44,774.3 89.8 12,517.8 45.2
Operating Budget 8,840.2 27,623.0 10,152.4 13,875.3 40,182.5 43,412.8 44,694.5 89.9 12,559.5 45.5
Development Budget 48.9 48.9 7.2 0.0 7.2 79.8 79.8 9.0 -41.7 -85.2
23 Ministry of Fore ign Affa irs 1,031.0 2,134.7 711.3 1,219.9 2,891.7 2,871.3 3,195.2 90.5 757.0 35.5
Operating Budget 947.5 2,044.9 686.2 896.1 2,541.1 2,283.2 2,607.1 97.5 496.2 24.3
Development Budget 83.5 89.8 25.1 323.8 350.6 588.1 588.1 59.6 260.9 290.6
15 P re side ntia l P rote ctive S e rvice 225.4 908.8 287.1 284.4 1,045.2 872.9 1,117.8 93.5 136.4 15.0
Operating Budget 230.6 886.8 268.5 267.9 976.1 764.0 1,008.9 96.7 89.3 10.1
Development Budget -5.2 22.0 18.6 16.5 69.1 108.9 108.9 63.4 47.1 213.8
64 Ge ne ra l D ire ctora te of N a tiona l S e curity 876.3 2,958.8 1,363.8 1,091.2 4,493.3 4,154.5 4,156.4 108.1 1,534.5 51.9
Operating Budget 876.3 2,913.1 1,363.8 1,086.4 4,482.3 4,130.4 4,132.3 108.5 1,569.2 53.9
Development Budget 0.0 45.7 0.0 4.8 11.0 24.1 24.1 45.4 -34.7 -76.0
T ota l S e curity 21,259.3 62,139.7 21,382.9 30,561.9 86,070.8 89,355.0 91,207.3 94.4 23,931.1 38.5
Operating Budget 21,079.1 61,697.8 21,304.4 30,132.7 85,503.7 88,316.4 90,168.7 94.8 23,805.9 38.6
Development Budget 180.1 441.9 78.5 429.3 567.2 1,038.6 1,038.6 54.6 125.2 28.3
10 P re side nts Office 405.1 1,389.9 437.2 539.0 1,689.7 1,847.9 2,065.9 81.8 299.8 21.6
Operating Budget 351.7 1,270.3 392.9 472.7 1,557.7 1,468.6 1,686.6 92.4 287.4 22.6
Development Budget 53.4 119.7 44.2 66.3 132.1 379.4 379.4 34.8 12.4 10.3
11 N a tiona l Asse mbly Me sha nro Jirga 55.1 337.1 132.8 79.6 408.3 464.2 483.6 84.4 71.3 21.1
Operating Budget 51.2 314.4 125.8 75.5 381.2 357.1 376.4 101.3 66.8 21.2
Development Budget 3.9 22.6 7.0 4.1 27.1 107.1 107.1 25.3 4.5 19.8
12 N a tiona l Asse mbly W ole si Jirga 219.3 701.3 301.0 191.4 938.9 903.1 933.8 100.5 237.5 33.9
Operating Budget 215.2 690.5 297.7 189.6 933.7 895.8 926.5 100.8 243.2 35.2
Development Budget 4.1 10.9 3.4 1.8 5.2 7.3 7.3 71.1 -5.7 -52.3
14 S upre me Court 366.3 1,149.3 401.8 425.3 1,429.0 1,445.9 1,468.1 97.3 279.7 24.3
Operating Budget 351.5 1,094.9 339.6 382.2 1,278.5 1,192.7 1,214.9 105.2 183.5 16.8
Development Budget 14.8 54.3 62.3 43.1 150.5 253.2 253.2 59.4 96.2 177.1
50 Ministry of Justice 568.0 1,887.4 563.0 301.6 1,829.6 2,417.7 1,944.4 94.1 -57.8 -3.1
Operating Budget 542.1 1,738.7 507.6 203.2 1,610.7 2,104.1 1,630.9 98.8 -127.9 -7.4
Development Budget 26.0 148.7 55.4 98.4 218.9 313.6 313.6 69.8 70.2 47.2
13 Administra tive Affa irs 318.7 1,638.5 299.4 434.7 1,526.1 640.0 1,519.4 100.4 -112.4 -6.9
Operating Budget 296.6 1,591.8 270.9 430.5 1,493.3 563.3 1,442.6 103.5 -98.4 -6.2
Development Budget 22.0 46.7 28.5 4.3 32.8 76.8 76.8 42.7 -14.0 -29.9
21 Ministry of S ta te a nd P a rlia me nta rt Affa irs 20.7 51.7 22.5 36.8 99.8 80.0 102.2 97.7 48.1 93.0
Operating Budget 20.7 51.7 22.5 36.8 99.8 80.0 102.2 97.7 48.1 93.0
Development Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 N/A
24 Ministry of H a j a nd R e ligious Affa irs 228.7 520.9 -242.9 357.8 813.7 729.0 854.2 95.3 292.8 56.2
Operating Budget 192.3 452.7 -262.6 312.7 704.7 595.9 721.0 97.7 251.9 55.6
Development Budget 36.3 68.2 19.7 45.0 109.1 133.2 133.2 81.9 40.9 60.0
51 Attorne y Ge ne ra l 191.1 609.6 176.2 285.4 822.5 826.7 866.9 94.9 212.9 34.9
Operating Budget 173.9 576.2 164.8 216.5 674.0 643.5 683.6 98.6 97.7 17.0
Development Budget 17.1 33.4 11.4 68.9 148.6 183.2 183.2 81.1 115.2 344.8
72 E le ction Commission 33.3 91.4 24.1 44.4 106.3 106.5 113.1 94.0 15.0 16.4
Operating Budget 25.0 83.1 24.1 37.4 99.3 106.5 113.1 87.7 16.1 19.4
Development Budget 8.2 8.2 0.0 7.1 7.1 0.0 0.0 - -1.2 -14.2
62 IAR CS C 170.4 603.5 215.4 208.7 705.7 257.0 304.2 232.0 102.3 16.9
Operating Budget 68.7 221.6 78.3 93.1 292.1 242.1 714.9 40.9 70.6 31.8
Development Budget 101.7 381.9 137.1 115.6 413.6 15.0 15.0 2,765.3 31.7 8.3
85 Inde pe nde nt Commission for Ove rse e ing the Imple me nta tion of
68.7
Cons 221.6 78.3 93.1 292.1 720.7 714.9 40.9 70.6 31.8
Operating Budget 0.0 0.0 12.2 30.8 52.2 62.0 56.2 92.8 52.2 N/A
Development Budget 68.7 221.6 66.1 62.3 240.0 658.7 658.7 36.4 18.4 8.3
67 T he H igh office of Ove rsight a nd Anti Corruption 884.2 2,255.6 504.2 756.8 2,198.9 143.2 149.1 1,475.1 -56.7 -2.5
Operating Budget 28.3 69.3 25.9 31.0 99.2 89.4 95.3 104.1 29.9 43.1
Development Budget 855.9 2,186.2 478.3 725.8 2,099.7 53.8 53.8 3,901.9 -86.5 -4.0
59 Inde pe nde nt D ire ctora te of Loca l Gove rna nce 5.1 8.1 2.7 0.0 6.8 3,075.5 3,139.5 0.2 -1.2 -15.0
Operating Budget 675.1 0.0 443.8 616.6 1,837.7 1,851.6 1,915.6 95.9 1,837.7 N/A
Development Budget -670.0 8.1 -441.1 -616.6 -1,830.9 1,223.9 1,223.9 -149.6 -1,839.0 -22,832.9
74 Le ga l T ra ining Ce nte r 0.0 0.0 0.0 0.0 0.0 11.6 6.9 0.0 0.0 N/A
Operating Budget 5.1 0.0 2.7 0.0 6.8 11.6 6.9 99.8 6.8 N/A
Development Budget -5.1 0.0 -2.7 0.0 -6.8 0.0 0.0 - -6.8 N/A
T ota l Gove rna nce , R ule of La w a nd H uma n R ights 3,534.8 11,465.8 2,915.7 3,754.4 12,867.6 13,669.2 14,666.2 87.7 1,401.8 12.2
Operating Budget 2,997.7 8,155.3 2,446.3 3,128.4 11,121.0 10,264.1 11,686.7 95.2 2,965.6 36.4
Development Budget 468.4 3,310.4 469.4 626.0 1,746.6 3,405.1 3,405.1 51.3 -1,563.8 -47.2
Source: FPU using AFMIS data downloaded on the 26 May 2012
(1) For individual Ministries (not the total budget), allocated operating Budget may not equal the approved budget, as funds are allocated from contingency reserve during the year. Allocated budget
for the development budget is the same as the latest approved budget.
150 Sale of Land and Buildings 12.3 107.6 22.7 9.2 9.8 17.2 59.0 -48.6 -45.2
2+150 T OT AL GR OSS EXPEN D IT U R E 53,645.1 154,376.6 100.0 28,324.3 47,392.1 54,213.2 72,031.6 201,961.2 100.0 47,584.5 30.8
RECURRENT EXPENDITURE 42,163.9 125,090.1 81.0 24,400.1 40,030.5 43,717.6 59,362.9 167,511.1 82.9 42,421.0 33.9
CAPITAL EXPENDITURE 11,481.2 29,286.5 19.0 3,924.2 7,361.6 10,495.6 12,668.7 34,450.1 17.1 5,163.6 17.6
701 Ge ne ra l Public Se rvice s (1) 5,321.2 13,882.3 9.0 2,447.7 3,799.2 7,334.7 7,864.8 21,446.5 10.6 7,564.2 54.5
Recurrent Expenditure 4,644.2 12,512.7 8.1 2,233.8 3,521.1 6,861.3 5,984.8 18,601.0 9.2 6,088.3 48.7
Capital Expenditure 677.0 1,369.6 0.9 213.9 278.1 473.4 1,880.1 2,845.5 1.4 1,475.9 107.8
702 D e fe nce 10,024.0 31,652.4 20.5 8,615.6 10,112.6 11,852.3 15,353.5 45,934.0 22.7 14,281.6 45.1
Recurrent Expenditure 9,898.2 31,362.4 20.3 8,521.8 10,015.1 11,755.5 14,981.9 45,274.3 22.4 13,911.9 44.4
Capital Expenditure 125.8 290.0 0.2 93.9 97.5 96.8 371.6 659.7 0.3 369.7 127.5
703 Public Orde r a nd Sa fe ty 11,423.8 32,278.8 20.9 5,489.8 11,065.1 10,075.4 14,443.5 41,073.7 20.3 8,794.9 27.2
Recurrent Expenditure 11,016.0 31,493.1 20.4 5,467.1 10,898.3 9,718.9 13,686.8 39,771.0 19.7 8,277.8 26.3
Capital Expenditure 407.8 785.7 0.5 22.7 166.9 356.5 756.7 1,302.8 0.6 517.1 65.8
704 Economic Affa irs 13,223.6 35,234.1 22.8 4,900.8 9,113.4 13,125.4 17,023.0 44,162.6 21.9 8,928.5 25.3
Recurrent Expenditure 4,468.7 13,207.8 8.6 1,509.1 3,324.3 4,390.4 8,265.1 17,489.0 8.7 4,281.1 32.4
Capital Expenditure 8,754.9 22,026.3 14.3 3,391.7 5,789.1 8,735.0 8,757.8 26,673.6 13.2 4,647.4 21.1
705 Environme nta l Prote ction 397.3 912.6 0.6 23.0 44.3 48.5 70.1 185.9 0.1 -726.7 -79.6
Recurrent Expenditure 38.3 114.1 0.1 21.8 34.2 35.0 47.7 138.7 0.1 24.6 21.5
Capital Expenditure 359.0 798.5 0.5 1.2 10.1 13.5 22.4 47.2 0.0 -751.3 -94.1
706 H ousing a nd Communa l Ame nitie s 809.6 1,823.0 1.2 72.7 228.6 346.1 270.6 918.0 0.5 -905.0 -49.6
Recurrent Expenditure 175.0 529.6 0.3 41.9 141.8 95.0 151.9 430.5 0.2 -99.1 -18.7
Capital Expenditure 634.7 1,293.3 0.8 30.8 86.9 251.1 118.7 487.5 0.2 -805.8 -62.3
707 H e a lth 2,442.9 6,596.6 4.3 705.2 2,032.9 1,790.9 2,619.7 7,148.7 3.5 552.1 8.4
Recurrent Expenditure 2,285.5 6,182.4 4.0 676.6 1,973.5 1,718.3 2,495.6 6,864.0 3.4 681.5 11.0
Capital Expenditure 157.5 414.2 0.3 28.6 59.4 72.6 124.1 284.8 0.1 -129.4 -31.2
708 R e cre a tion, Culture a nd R e ligion 600.8 1,926.9 1.2 542.2 600.9 70.3 785.3 1,998.8 1.0 71.9 3.7
Recurrent Expenditure 459.7 1,547.6 1.0 492.9 526.1 -36.4 614.1 1,596.7 0.8 49.0 3.2
Capital Expenditure 141.1 379.2 0.2 49.3 74.8 106.7 171.2 402.1 0.2 22.8 6.0
709 Educa tion 8,309.0 26,223.3 17.0 4,423.9 8,072.3 7,788.4 10,898.6 31,183.2 15.4 4,959.8 18.9
Recurrent Expenditure 8,183.7 24,456.3 15.8 4,336.0 7,308.8 7,442.3 10,517.9 29,605.0 14.7 5,148.7 21.1
Capital Expenditure 125.3 1,767.1 1.1 87.9 763.4 346.1 380.8 1,578.2 0.8 -188.9 -10.7
710 Socia l Prote ction 1,093.0 3,846.6 2.5 1,103.4 2,322.7 1,781.1 2,702.6 7,909.8 3.9 4,063.2 105.6
Recurrent Expenditure 994.7 3,683.9 2.4 1,099.2 2,287.3 1,737.3 2,617.1 7,741.0 3.8 4,057.1 110.1
Capital Expenditure 98.3 162.7 0.1 4.2 35.4 43.8 85.4 168.7 0.1 6.1 3.7
Source: FPU using AFMIS data downloaded on the 26 May 2012
1/ Recurrent expenditure in the General Public Services sector excludes interest payments on loans.
Table 6.9 - Transactions in Financial Assets and Liabilities in the Core Budget
1389 1389 1389 1390 1390 1390 1390 1390 1390 1390 Compa rison to
Qtr 4 Annua l %GDP Qtr 1 Qtr 2 Qtr 3 Qtr 4 Annua l %GDP 1389 YT D
Code In millions of Afgha nis
Actua l Actua l Pre lim Pre lim Pre lim Pre lim Pre lim
Qtr Qtr Qtr Qtr Qtr Cha nge % Incre a se
3+4 T RANSACT IONS IN FINANCIAL ASSET S AND
LIABILIT IES 9,924.5 -6,107.0 -0.8 -17,041.7 4,918.1 8,381.5 14,229.1 10,486.9 1.2 16,593.9 -271.7
3 NET ACQUISIT ION OF FINANCIAL ASSET S 2,680.8 -17,032.6 -2.3 -15,615.0 3,276.8 2,492.1 3,887.8 -5,958.3 -0.7 11,074.3 -65.0
Dome stic 2,680.8 -17,032.6 -2.3 -15,615.0 3,276.8 2,492.1 3,887.8 -5,958.3 -0.7 11,074.3 -65.0
Currency and Deposits -927.6 -17,898.3 -2.5 -7,972.1 -328.8 4,609.8 -2,374.8 -6,065.9 -0.7 11,832.4 -66.1
311 Treasury Single Account -939.7 -16,827.5 -2.3 -5,525.9 -4,030.6 4,778.3 -2,840.5 -7,618.7 -0.9 9,208.9 -54.7
313 Donor Accounts 1,010.6 478.7 0.1 -2,466.5 4,044.6 797.6 463.9 2,839.7 0.3 2,361.0 493.2
314/90 Other Deposit Accounts (1) -998.5 -1,549.5 -0.2 20.2 -342.8 -966.2 1.8 -1,287.0 -0.1 262.5 -16.9
317 Loans -0.1 246.2 0.0 17.9 1.0 1.5 6.0 26.4 0.0 -219.8 -89.3
319 Other Accounts Receivable 41.9 619.5 0.1 424.0 -52.4 396.8 -690.0 78.4 0.0 -541.1 -87.3
Other Assets 3,566.7 0.0 0.0 -8,084.8 3,657.0 -2,516.0 6,946.5 2.8 0.0 2.8 N/A
Fore ign 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
4 NET ACQUISIT ION OF LIABILIT IES 7,243.7 10,925.5 1.5 -1,426.8 1,641.3 5,889.3 10,341.3 16,445.2 1.9 5,519.6 50.5
Dome stic 6,467.7 8,154.9 1.1 -1,505.4 1,058.6 4,710.9 9,807.7 14,071.8 1.6 5,916.9 72.6
411 Accounts Payable 4.4 -9.6 0.0 42.0 -19.0 60.9 454.7 538.6 0.1 548.2 -5,705.2
413 Pension Liabilities -9.9 0.0 0.0 4.0 -2.6 3.9 -5.3 0.0 0.0 0.0 N/A
423 Other Payables 2,573.4 4,007.0 0.5 0.0 850.1 1,133.9 -277.7 1,706.4 0.0 -2,300.6 -57.4
451 Other Liabilities (1) 3,899.9 4,157.5 0.6 -1,551.4 230.0 3,512.3 9,636.0 11,826.8 1.4 7,669.4 184.5
Fore ign 776.0 2,770.7 0.4 78.6 582.8 1,178.4 533.6 2,373.4 0.3 -397.3 -14.3
431 Foreign Currency -4.2 1.4 0.0 -4.9 -8.8 -57.9 -9.6 -81.3 0.0 -82.7 -5,850.2
181-2 Loans 780.2 2,769.3 0.4 83.5 591.6 1,236.3 543.3 2,454.7 0.3 -314.6 -11.4
Source: FPU using AFMIS data downloaded on the 26 May 2012
1. Deposits on Letter of Credits (321) are netted out with Letter of Credit Commitment Accounts (451). The net amount is included under either 'Other Deposit Accounts' or ' Other Liabilities' depending on the direction of net transactions during the period.
1 Revenues including Grants 43,708.2 160,372.8 22.0 45,343.3 42,464.7 45,820.3 57,741.5 191,369.8 21.9 30,997.0 19.3
2-25 Expenditures (Recurrent) 42,163.9 125,090.1 17.1 24,400.1 40,030.5 43,717.6 59,362.9 167,511.1 19.2 42,421.0 33.9
23 Interest 7.3 79.5 0.0 37.5 7.2 39.7 7.5 92.0 0.0 12.5 15.7
N e t Ba la nce (1-2-25) 1,544.3 35,282.7 4.8 20,943.2 2,434.2 2,102.7 -1,621.4 23,858.7 2.7 -11,423.9 -32.4
Prima ry Ba la nce (1-2-25+23) 1,551.6 35,362.2 4.8 20,980.7 2,441.4 2,142.4 -1,613.9 23,950.7 2.7 -11,411.4 -32.3
25 Net Acquisition of Nonfinancial Assets 11,468.9 29,178.9 4.0 3,901.5 7,352.3 10,485.8 12,651.6 34,391.1 3.9 5,212.2 17.9
N e t Le nding-Borrowing (1-2) -9,924.6 6,103.7 0.8 17,041.7 -4,918.1 -8,383.1 -14,272.9 -10,532.4 -1.2 -16,636.1 -272.6
Fina ncing (3+4+5) 9,924.6 -6,103.7 -0.8 -17,041.7 4,918.1 8,383.1 14,272.9 10,532.4 1.2 16,636.1 -272.6
3 Net Acquisition of Financial Assets 2,680.8 -17,032.6 -2.3 -15,615.0 3,276.8 2,492.1 3,887.8 -5,958.3 -0.7 11,074.3 -65.0
4 Net Acquisition of Financial Liabilities 7,243.7 10,925.5 1.5 -1,426.8 1,641.3 5,889.3 10,341.3 16,445.2 1.9 5,519.6 50.5
5 R ET AIN ED EAR N IN GS 0.1 3.3 0.0 0.0 0.0 1.6 43.9 45.5 0.0
D iscre pa ncie s (Fina ncing-3-4-5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0