Budget Department Ministry of Finance

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The Project Report  for first Quarter is Availble Now.

Please Click Here to Download :  Making Budget And Aid  Work Project Quarter 1,  2012 Report 

On The Road To Transformation

TIMG 3557he budget preparation process in Afghanistan has been centralized. Budget appropriations are made by line ministries to the level of object code (activity) and project code, but without account of the provincial breakdown of the budget item. Line ministries lack mechanisms to develop and also justify provincial allocation of their budget. Additionally, most provincial departments are not involved in the budget preparation and remain unaware of the final budget allocation by provinces. In 1386, MoF initiated provincial budget reform in order to address these issues.

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 As a follow up to this crucial reform, the Provincial Budgeting Unit of MoF with support from the UNDP Making Budget and Aid Work Project (MBAWP), is conducting a series of Budget Circular No 1 (BC1) regional workshop for all 32 provinces of Afghanistan for five pilot provincial departments - Department of Education, Department of Public Health, Independent Directorate of Local Governance, Department of Agriculture Irrigation and Livestock, Department of Rural Rehabilitation and Mustofiats (financial departments in provinces.)The aim of these workshops is to build capacities of these departments to implement provincial budgeting.As a result, this will help in decentralizing implementation authority to provinces and promote greater participation in provincial budget formulation and execution.

IMG 3929Amidst much anticipation, in July 2011 the opening workshops were inaugurated simultaneously in Bamyan and Nangarhar provinces.  The workshops are provided at regional capitals such as in Bamyan, Herat, Kabul, Mazar-e-Sharif and Kandahar.    Out of 34 provinces 32 were covered. From each of the five provincial departments 1 Director, altogether 3 finance and planning staff participated. From each Mustofyat 1 Financial Director and 1 Accounting Officer participated. The training sessions had group exercises, presentations and team oriented tasks.

Dr. Abdul Qayoum Pukhla, Director of Department of Public Health of Kandahar province shared, ´earlier we were unaware of budget formulation rules and regulations and lacked capacity and knowledge on budget integration. Thanks to this workshop we have now learnt how to develop budget proposals aligned with prioritization of project activities based on the Budget Circular No1 (BC1)guidlines. I am now confident that we can develop strong budget proposals!' In addition Mr. Alhaj Azim Khan Ahmadzai, the finance director of the Kandahar, shared, 'the training sessions were very comprehensive and covered important topics related to budget preparation process and intergovernmental agreement on approach to provincial budgeting'.

The sessions focused on the following themes i) How to provide input in budget formulation process for 1391 national budget. ii) Budget formulation process and developing BC1 proposals through practical session iii) Brief information about Afghanistan National Development Strategy in order to formulate DSC01917 - Copythe provincial budget based on the strategy and priorities. Rolling out of the regional workshops is a significant achievement and a step forward in promoting implementation of provincial budgeting. By supporting the implementation of such crucial reforms, MBAWP is further reinforcing the message it plays a technical and policy role in helping the Government of Afghanistan achieve its national priorities.

The UNDP-Ministry of Finance ‘Making Budget and Aid Work Project’ aims to strengthen the National Budget processes as a comprehensive policy and decision making mechanism for the Government of Afghanistan so that Departments of the MoF and other related institutions are able to deliver the reforms and services required of them in an effective and accountable manner with strengthened administration support.

Media journalist Participate in one day learning course "Know your budget"


Twenty media journalists from Afghanistan working in leading media companies in Kabul, Afghanistan were selected to participate in the one day interactive learning course event titled ‘know your budget’ held on 14 March 2012, in Kabul Star Hotel and organized in joint partnership with the Ministry of Finance and UNDP Making Budgets and Aid Work Project.  Through this learning course, the journalists learnt how the MoF prepares its national budget, its relevance and implication at national level, how the budget addresses priorities that will benefit the people of Afghanistan and finally how it promotes sound Public Financial Management.

Read more: Improving Budget Transparency:

 From Afghanistan to Bussan: Looking for New Development Cooperation

afgbos k1As a follow up to the Paris Declaration and ACCRA Agenda for Action, Ministers from both developing and donor countries, government representatives, parliamentarians, civil society organisations and private sector representatives will come together for the Fourth High-Level Forum (HLF-4) on Aid Effectiveness in Busan, Korea, from 29 November to 1 December 2011 to review global progress in improving the impact of development aid and make new commitments to further ensure that aid helps reduce poverty and supports progress in meeting the Millennium Development Goals (MDGs).

In 2005, heads of agencies and other senior officials from different countries met in Paris at the High Level Forum, and committed their countries and organizations to the Paris Declaration Commitments by signing the Paris Declaration on Aid Effectiveness. In September 2008, development partners came together in Accra, Ghana, to boost efforts to achieve the Paris targets. In addition to all these commitments, findings from the Paris Declaration Evaluation and Monitoring Surveys show slow More

Findings of the Paris Declaration Evaluation Phase II: Ensuring aid priorities are met

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In February 2005, the International Community came together at the Paris High-Level Forum on Aid Effectiveness to improve the quality of aid and its impact on development priorities and to support partner country efforts to strengthen development performance. The International Community formulated five principles on Aid Effectiveness which are Ownership, Alignment, Harmonization, Managing for Results, and Mutual Accountability; and twelve indicators to assess the progress of the five benchmarks. It was agreed to conduct country-level evaluations on aid effectiveness, where Governments would take a lead. More


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Access MBAW Project Document About MBAW/UNDP Ministry of finance

The Kabul Conference was held on 20 July 2010 in Kabul and presented an Afghan-led plan for improving development, governance and security, including priority programmes to enhance service delivery. The Government put forward a credible, realistic and ‘achievable’ national agenda, underpinned by priority programmes and reform initiatives. These aim at producing tangible results for the Afghan people. In order to enable the Government to implement its prioritized agenda, renewed emphasis was placed on the need for sustained and coherent capacity-building support at national and at sub-national levels. The Kabul Conference is a critical stepping stone in a “Kabul Process” of transition to full Afghan leadership and responsibility, building on previous international commitments including the London Conference and outreach activities of the Afghan Government.

Read more: Making Budgets and Aid Work Project Overview