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Public financial management is a core function of any state. In Afghanistan, where we have many demands on our revenues and on donor funds, the challenges are significant. However, the benefits are also crucial, and go beyond technical capabilities to improvements in overall governance. At the London Conference in January 2010, the Government of Afghanistan and its development partners agreed to work together to increase assistance to Afghanistan through the central budget to 50% over the next two years. This commitment represents a critical shift in financing for development. To ensure effective utilization of these resources, Government agreed to present credible plans in the Kabul Conference for further strengthening Public Financial Management systems, reducing the risk of corruption, improving budget execution, developing a financing strategy for development and improvements in Government’s capacity to deliver. Therefore, the government of Afghanistan in July 2010 at the Kabul International Conference presented the Public Financial Management (PFM) Roadmap consisting of the three years' reform targets, as one of its national priority programs (NPPs).

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In order to spend wisely and effectively the money which the Afghan government has available, we need a sound budget process which allocates resources to priorities. We also need a transparent and fair system to hold government to account for the money it spends and the results it achieves on behalf of the citizens of Afghanistan. Hence the Roadmap sets out how the Government intends to strengthen the ability of Government to effectively design and implement programming while demonstrating the highest standards of transparency and accountability. It is focused on three key aims: Strengthening the Budget in driving effective delivery of key priority outcomes; Improving Budget Execution; and Increasing Accountability and Transparency. A key cross-cutting theme – critical in the implementation of all of these goals – is increasing the capacity of line-ministries to implement programs effectively and efficiently.