1393-Quarterly Fiscal Bulletin 4

Islamic Republic of Afghanistan
Ministry of Finance
Fiscal Policy Directorate

Quarterly Fiscal Bulletin
Quarter 4, 1393
Foreword and Acknowledgement
A budget is the policy instrument of a nation that provides a stable macroeconomic framework,
guides the collection and mobilization of public revenues, and ensures that these resources are
expended prudently to meet the policy priorities. Fiscal policy plays a pivotal role in a budget and
serves as a tool to achieve economic and social objectives. From a macroeconomic perspective, one
of the central insights from research on developing countries is that prudent fiscal policy is essential
for reducing poverty and improving social outcomes.
Just as the design of robust fiscal policy is important, the openness of fiscal data is equally
important. In line with the Governments commitment to more transparency, ensuring that citizens,
civil society and all areas of Government have access to information has been one of our top
priorities and our latest Open Budget Index (2012) score is a testimony to our efforts.
This bulletin presents an assessment of our public finances in the 4th quarter of fiscal year 1393.
This edition of the bulletin highlights detailed assessments of recent macroeconomic, fiscal and
budgetary developments, including trends in domestic revenue and expenditures performance,
transactions related to the acquisition of non-financial assets and the budget balance, as well as
information on the effects of the wider economy on the fiscal situation. The bulletin also provides a
snapshot of the budget execution rates during the reporting period whilst section five includes an
article on the Impact of International Prices on CPI.
I would like to commend the Fiscal Policy Directorate (FPD) for preparing this quarterly bulletin. I
would also like to extend my appreciation to Budget, Revenue and Treasury departments as well as
individual colleagues for their input and support. We would very much welcome any comment or
suggestion about this bulletin.
Please provide your comments to Mr. Hafizullah Momandi (hafizlm@yahoo.com). This bulletin is
available in softcopy on the Budget website (www.budgetmof.gov.af).
Mohammad Mustafa Mastoor

Deputy Minister for Finance
Ministry of Finance
www.budgetmof.gov.af
www.mof.gov.af
The material in this publication may be freely quoted and reprinted with acknowledgement
Contents
Summary ....................................................................................................................................................... 1
Introduction .................................................................................................................................................. 3
Macro-Fiscal Situation .................................................................................................................................. 4
Quarterly Macroeconomic Situation ........................................................................................................ 4
Macro-Fiscal Risks ..................................................................................................................................... 5
Revenue ........................................................................................................................................................ 7
Revenue Performance by Category .......................................................................................................... 8
Revenue Performance by Province ......................................................................................................... 10
Revenue Performance by Collection Agency .......................................................................................... 12
Revenue Performance in Grants ............................................................................................................. 12
Expenditure ................................................................................................................................................. 13
Expenditure by Ministry.......................................................................................................................... 16
Debt and Financing ..................................................................................................................................... 17
CPI and International Prices ........................................................................................................................ 20
Annex .......................................................................................................................................................... 24
Glossary ....................................................................................................................................................... 38
Revisions and Notes .................................................................................................................................... 40
Summary
Key Points
- This year has seen the GDP forecasts significantly revised down, a drop in imports and a
general reduction in the level of economic activity and investment in the country, as a result
of the uncertainty. Inflation remained very low, partially because of falls in rents and partially
because of falls in international prices at the end of the year.
- Revenue has slowed drastically in response to the economic climate. Imports and retail
revenue have been particularly impacted, and businesses have registered less income for
taxation.
- The expenditure was cutback, particularly in Goods and Services and Capital spending, in
reaction to the falls in revenue. Enough cutbacks were made in quarter 4 to ensure the
Government has a carry forward of Afs 8 billion for the 1394 fiscal year.
Acquisition of NFA
Acquisition of NFA
Compensation
Compensation
Q4 Actual Q4 YTD Actual
G+S
G+S
Securi ty 26416 15880 3991 Securi ty 99024 32977 7521

Governa nce, Rul e of La w a nd Huma n Ri ghts 2580 713 76 Governa nce, Rul e of La w a nd Huma n Ri ghts 9953 2617 357
Infra s tructure a nd Na tura l Res ources 584 1414 96 Infra s tructure a nd Na tura l Res ources 2126 2889 1228
Educa ti on 9712 1785 59 Educa ti on 31656 4089 132
Hea l th 571 809 44 Hea l th 1884 1849 100
Agri cul ture a nd Rura l Devel opment 377 85 33 Agri cul ture a nd Rura l Devel opment 1355 393 52
Soci a l Protecti on 374 206 1 Soci a l Protecti on 1439 760 14
Economi c Gov. a nd Pri va te Sector Devel 't 415 567 12 Economi c Gov. a nd Pri va te Sector Devel 't 1773 2115 21
Uncl a s s i fi ed 237 293 1 Uncl a s s i fi ed 946 562 6
TOTAL 41266 21752 4312 TOTAL 150157 48250 9431
Quarterly Fiscal Bulletin Page |1 Q4-1393

Sources and Uses of Funds Table 1392 1393
In millions of Afs Budget Q4 Actual Budget Q4 Actual
Revenue 328383 91864 397670 102943

Tax Revenue 91637 22664 98425 21577
Fixed Taxes 12368 3455 13807 2689
Taxes on Income and Profits 17939 3789 19741 5111
Taxes on Property 398 73 399 147
Taxes on Goods and Services 22692 5435 23246 5183
Taxes on International Trade 34887 7724 36074 7581
Other Taxes 3353 2187 5158 866
Grants 209150 58273 268091 74211
Foreign Governments 31020 56409
International Organisation 27253 17802
Other Revenue 27596 9883 31153 6179
Property Income 3921 441 3315 345
Sales of Goods and Services 10518 3248 10746 538
Fines & Penalties 11163 3346 12770 3098
Extractive Industry - Royalties & Fees 524 239 762 399
Others 1470 2610 3560 1799
Social Contributions 3767 1044 4221 976
Expenditure 262104 76096 0 78543

Compensation of Employees 143927 38976 0 41266
Uses of Goods and Services 106583 34283 0 32390
Consumption of Fixed Capital 0 0 0 0
Interest 394 96 0 75
Subsidies 11201 2741 0 4811
Grants 0 0 0 0
Social Benefits 0 0 0 0
Other Expense 0 0 0 0
Net Operating Balance 66279 15768 397670 24400
Net Acquistion of Non-Financial Assets 88118 21909 0 17068

Fixed Assets 88118 21813 0 17034
Acquisition of Fixed Assets 88118 21817 0 17041
Sale of Fixed Assets (-) 0 4 0 7
Change in Inventories 0 0 0 0
Valuables 0 0 0 0
Non-Produced Assets 0 96 0 34
Net Lending/Borrowing -21839 -6140 397670 7332
Transactions in Financial Assets 21839 6141 -397670 -7332

Net Acquisition of Financial Assets 2435 -9462
Domestic 2435 -9462
Foreign 0 0
Net Incurrence of Liabilities 3705 2130
Domestic 70 2215
Foreign 3635 -85

Introduction
The current economic slowdown (associated with political and security transition) and its dire impact on
the country will remain for sometime in the short run. In order to reverse this situation, the National
Unity Government will take some quick and effective measures so that bring back the confidence of the
public, business and donor communities on the economy. The government will adopt measures and
policies to mitigate damages caused to the fiscal sector, including building a reserve for next year.
The level of the impact of the slowdown was dramatic for the country. For example, large reduction was
observed in revenue collection, leaving the government not able to even achieve the level of collection
from the previous year. The shortfall in revenue collection made the budget even more constrained as
fewer discretionary resources were available for the government to spend on its prioritized areas. The
rate of unemployment has also increased. The estimated data shows that the job market was badly
affected, as large numbers of employees who were employed in private sector, NGOs, and the public
sector (funded by donors) were laid off; as a result of reducing donor activity.
The analysis of fiscal data shows that a large part of the reduction in revenue was due to large fall in the
volume of imports, particularly for high tariff commodities, a reduction in sales taxes (e.g. BRTs) and
delays in the income tax payments by some businesses and firms. The large portion of revenues coming
from imports, which are more susceptible to shocks in price and demand, creates a large fiscal
vulnerability for the government. In order to lessen the effect, tax policies need to be designed in order
to minimize the imports dependency. The introduction of VAT will support this effort. The government
needs to find new revenue sources, broaden the tax bases, streamline the tax administration, and
improve the compliance rate. The lower revenue collection and dependency on foreign aid for
development projects has limited the governments options to raise the level of expenditures; and has
even led to dramatic cuts this year in expenditures for some of necessary items and projects.
The National Unity government has set out a number of priorities, of which the fiscal situation will be
one. However, changes to the existing policies will take time, and in the meantime the Government has
put in place some remedial measures during the current year. Furthermore, they will continue with
policies to contain the financing gap or in other words, continue the austerity measures to control
expenditure so that lessen the budget deficit. These measures to curtail over spending will be applied
across expenditure items like use of goods and services, and acquisition of assets (code 22 and 25), and
delays in issuing allotments for some development projects.
The governments financing needs has sharply risen, and fewer funds were available to finance the
governments essential projects as the donors were reluctant to provide their funds for disbursements.
The overall balance deficit reflects the fact that donor funds to the development budget expenditures
have fallen which led to lower execution rate.

Macro-Fiscal Situation
Quarterly Macroeconomic Situation
During fourth quarter 1393 the Government of Afghanistan has seen a continuation of the slowdown in
economic activity, which was the result of the uncertainty during the year. While performance is
expected to have recovered following the resolution of the elections, and the formation of the
Government, there are still signs of a continued slowdown including continued low price pressures
(although external factors had an impact on this), and continued reduced performance in Government
revenues on last year.
Table 1.1 Overview of Macro-Economy
1392 1393 1393

Historic Budget Revised
GDP 1,149.8 1,245.6 1,215.9
Agriculture 294.2 295.2 288.2
Industry 236.1 255.5 249.4
Services 619.6 694.9 678.2
Real GDP Growth (%) 6.4 3.6 1.9
Imports 529.2 559.1 472.9
Exports 100.0 104.5 38.6
1393 Figures are Government of Afghanistan Forecasts
There have been revisions to the macroeconomic data to take into account the changing economic
conditions through the year, including changes to the inflation, imports and growth forecasts.
The real growth rate was revised down to reflect the more subdued economic environment and changes
in the international forecasts for Afghanistan. The smaller growth rate of 1.9 percent is the result of
reductions in forecast activity in the retail sector, and in government services and manufacturing. The
revision to the exports data reflects a re-estimation, rather than a decline in expected exports.
Growth in each of these has been lowered by the economic downturn, and the retail and rental sectors
have been particularly affected by the security situation. During the most recent quarter we have seen:
A moderation in the rate of decline of the exchange rate;

A continuation of slow activity across most sectors as a result of the uncertainty;
A slowdown in Government activity in the economy with the cash crisis, and slowdown in
revenues (this has reduced both Government direct services, as well as supplier payments).
Consumer price index data is available on a quarterly basis, and provides a running indicator of
economic well-being. During this quarter we have seen:

- Large falls in vegetable prices as a result of the harvest during the third quarter, leading to a
dumping of goods on the market.
- Increases in both restaurant and hotel prices as a result of jumps in Kabul prices.
The inflation has been subdued throughout the entire year as a result of falls in the early part of the year
in the prices for rental accommodation particularly in Kabul.
The low inflation is likely to continue to the end of the fiscal year, with forecasts for inflation now at
1.3%, down from the 5.0% in the budget for this year. Inflation is likely to pick up in the next fiscal year,
as the one-off factors that have caused the moderation are unlikely to continue. The security situation
however will continue to put pressure on rental prices in Kabul, and the depreciation of the Afghani
creates a continued likelihood of inflation from imported foods.
Table 1.2 Consumer Price Index
1392 1393 1393 1393 1393

Q4 Q1 Q2 Q3 Q4
CPI Rate -1.0 1.1 -0.1 1.3 3.1

Food 0.8 1.0 -1.0 2.0 1.1
Non-Food -2.9 1.2 0.8 0.5 2.3
Exchange Rate (Afs/$) 56.22 57.24 56.96 57.25 57.15
Macro-Fiscal Risks
The Government maintains track of likely risks that could occur in the next quarter, these are set out in
Table 1.3.
As we are now approaching the end of the fiscal year it is likely that any underperformance in grants
collection has already been accounted for, as a result this risk is not likely to have as much of an impact.
Operational grants are on track with targets (particularly funding for the security sector under LOTFA
and CSTC-A). The imports slowdown continues to present a risk as 1) it has continued into the third
quarter and will likely continue for the remainder of the year, and 2) it is unclear whether or not the
factors affecting the reduction will resolve themselves next year (slowdowns in both construction
materials imports and fuel imports).
The exchange rate has depreciated less this quarter, however a continued depreciation remains a risk to
costs as the fundamental problems causing weakness in the Afghani have not been resolved; including
typically differential inflation rates between the US and Afghanistan, and a significant current account
deficit, vulnerable to sudden changes in inflows from donor support and remittances.

Table 1.3 Risk Matrix
Risk Likelihood Impact

Rating Maintained
Fiscal: Revenue slowdown as a result of continued import slowdown HIGH HIGH
Fiscal: Exchange rate depreciation causes cost increase for Government imports LOW MEDIUM
Fiscal: Interest rate increase creates additional debt costs LOW LOW
Fiscal: Aid slowdown (commitments dont materialize) MEDIUM HIGH

Macroeconomic: continued uncertainty through the election and transition
MEDIUM LOW
reduces FDI
Fiscal: O&M costs are calculated as higher than anticipated LOW MEDIUM
Macroeconomic: depreciation of the Afghani causes increases in food prices,

LOW MEDIUM
and the CPI
Rating Changed/Newly Added
Fiscal: Government cash reserves remain very low, and mismatches between
HIGH HIGH
revenue and expenditure could precipitate another cash shortage.

Revenue
Revenue Facts
- Property Taxes performed outstanding and surpassed the target with by 22 percent, caused
majorly due to unclassified items in miscellaneous revenue.
- Tax Penalties performance was unexpected during 4th quarter 1393 which is 100 percent
behind the target.
- Overall revenue performance in 4th quarter 1393 was lower when compared to the same
period during fiscal year 1392 which shows about 15 percent decline.
- Prolonged election and unrest in political environment propel economic activities to be slow
and this lead to have impacts on economic growth which has direct impact on revenue
performance.
Table 2.1 Performance in Key R evenue Lines
1392 1393
Actual Actual % Change
YT D Q4 YT D Q4
BRT Sales 5,642 3,558 -37%
BRT Services 3,877 4,358 12%
BRT Customs 8,290 7,289 -12%
Tax on Wages 8,753 8,137 -7%
Tax on Profit 2,723 2,031 -25%
Construction Withholding 2,680 3,703 38%
Table 2.1 reflects about 30% of the revenue collection during the year (30% in 1392, 27% in 1393 as a
result of these lines being more severely affected by the downturn during the past two years). BRT sales
fall reflects the drop in consumption activity in the economy, partially as a result of falling incomes, but
also likely as an effect of increased precautionary savings by households. This is not duplicated in the
BRT customs which increases, likely as a result of a differing market composition for services versus
goods.
The fall in BRT customs is the result of the downturn in imports, and decreases in wages and profits
taxes reflects the overall slowdown in economic activity and likely unemployment caused by unexpected
political environment. The Government also earned substantial funds, Afs 3.0 billion, from Mobile
Telecoms Services in 1392; which fell to Afs 0.6 billion in 1394. However, this spike was the result of
one-off payments on 3G licenses.
Construction withholding tax has performed well, indicating that construction activity, or preparation for
construction activity, increased by 38% compared to last year.

Revenue Performance by Category
Revenues performance during 4th quarter of the year was below expectation, with collection of only 72
percent of target. The current years collection was 17 percent below the previous years collection. The
reason for the poor performance continues to be the economic uncertainties that were prevailing in the
third quarter due to political and security transition as well as the prolonged election process.
Revenue generation from domestic sources is a real concern as it went from bad to worst over the
previous years. Moreover, the inability to meet revenue targets also affects cash inflows from incentive
windows such World Bank Incentive programs and World Bank development policy grants.
Every major line item of the revenues and customs (except property tax) declined in this quarter, on the
previous years performance. As the table below depicts, the worst declines were in those tax lines most
tied to consumer activity (sales and import taxes), and those tied to overall economic activity (income
taxes and fixed taxes). The above expected performance in property tax reflects the efforts to increase
registration.
This fall in expected economic growth from 3.6 down to 1.9 percent would also be expected to reflect a
drop of around Afs 3 billion in revenue growth; the falls however were more skewed in areas where
revenue is collected for example, imports and likely drops in consumer sales beyond even the
slowdown in growth.
The summary values of revenue performance are set out in Table 2.1
Revenue Performance: Outturn vs Target

Afs Millions
45000 Total Customs Sales

40000
35000
30000
25000
20000
15000
10000
5000
0
1 2 3 4
Source: FPD, Mi nistry of Fi nance

Table 2.2 Summary Revenue Performance
In millions of Afghanis 1392 1392 1393 1393 1393 1393 % Ta rget % Cha nge
Q4 Q4 YTD Budget Ta rget Q4 Q4 YTD on 1392
Revenues Including Grants 91864 306105 - - 102943 278975 - 12%

Revenues Excluding Grants 33591 109732 133800 40140 28732 99278 72% -14%
Revenue (without customs) 25867 81427 97726 29318 21151 75019 72% -18%
Tax Revenues (without customs) 14940 52392 62352 18706 13996 47745 75% -6%
Fi xed Ta xes 3455 11972 13807 4142 2689 9921 65% -22%
Income Ta xes 3789 16610 19741 5922 5111 16803 86% 35%
Property Ta xes 73 295 399 120 147 633 122% 100%
Sa l es Ta xes 5435 17809 23246 6974 5183 15739 74% -5%
Other Ta xes 2081 5110 4482 1345 866 4649 64% -58%
Ta x Pena l ti es a nd Fi nes 106 596 676 203 0 0 0% -100%
Cus toms Duty, Import Ta xes 7724 28305 36074 10822 7581 24260 70% -2%
Non Tax Revenue 7273 21881 27593 8278 4380 16015 53% -40%
Income from Ca pi ta l Property 441 1739 3315 995 345 1383 35% -22%
Sa l es of Goods a nd Servi ces 3248 8127 10746 3224 538 3342 17% -83%
Admi ni s tra ti ve Fees 3143 10567 11996 3599 2915 9501 81% -7%
Roya l ti es 101 318 360 108 131 429 121% 30%
Non Ta x Fi nes a nd Pena l ti es 203 630 774 232 183 713 79% -10%
Extra cti ve Indus try 137 499 402 120 268 647 222% 95%
Miscellaneous Revenue 2610 3407 3560 1068 1799 7451 168% -31%
Social Contributions 1044 3747 4221 1266 976 3808 77% -7%
Grants 58273 196373 - - 74211 179697 - 27%

Foreign Governments 31020 140082 - - 56409 119263 - 82%
International Organisation 27253 56291 - - 17802 60434 - -35%
Other Government Units 0 0 - - 0 0 - -

Revenue Performance by Province
During 4th quarter 1393 revenue collection was lower than expected in the provinces, revenue
performance affected mainly due to uncertainties and speculations in the market and slow performance
in overall macroeconomic environment. In addition, unrest in security situation in some provinces also
affected revenue collection.
Table 2.3 below shows the revenue collection in Provinces that have historically made up the majority of
revenue collected. In a large part this is because these provinces represent major border crossings with
trading partners. In total 47.5 percent of total (non-grants) revenue was collected from these provinces.
During 4th quarter 1393 some provinces performed well and achieved above 80 percent revenue from
the target. Nimroz collected 12 above the target, followed by Nangarhar, Knadahar and Kabul which
collected 84%, 83% and 75% of the target respectively. However, some provinces such as, Herat, Balkh
and Faryab revenue collection was below expectation and revenue collection was only 60%, 63% and
31% of the target and this show 12% and 73% lower when compared to the same period in 1392 for
Balkh and Faryab provinces.
The performance in Nimroz is largely the result of import revenues in the province holding up, while
falling in many other places; while growth in imports in Nimroz was low this contrasts to the falls in
imports revenue in most areas. This likely reflects changes in routing decisions by international traders
from Pakistan to Iran.
Table 2.3 Revenue Collection by Key Provinces
In millions of Afghanis 1392 1392 1393 1393 1393 1393 % Ta rget % Cha nge
Q4 Q4 YTD Budget Ta rget Q4 Q4 YTD on 1392
Ka bul 552 2193 2876 863 648 2443 75% 17%

Na nga rha r 2912 11437 13563 4069 3405 11672 84% 17%
Ba l kh 2385 7847 11112 3333 2097 6675 63% -12%
Ka nda ha r 876 3059 3319 996 829 3087 83% -5%
Fa rya b 1719 5791 5035 1511 462 2785 31% -73%
Hera t 3475 15417 21627 6488 3879 13514 60% 12%
Ni mroz 1865 5792 6204 1861 2078 7014 112% 11%
Centra l Mi ni s tri es 16774 48948 59147 17744 12361 42810 70% -26%
Quarterly Fiscal Bulletin P a g e | 10 Q4-1393

Balkh; 1145.2m
collected, 1013m
target (113%)
Herat; 1708.3m
collected,
2136.4m target Nangarhar;
(80%) 1461.3m
collected,
Kandahar; 1653.3m target
Nimroz; 949.4m (88%)
309.9m
collected,
collected,
834.5m target
312.3m target
(114%)
(99%) AFMIS data extract 17 August 2014

Revenue Performance by Collection Agency
The revenue data in Table 2.4 shows the collection by agency (i.e. which area of the Government
collects the revenue for transmission to the Treasury Single Account). A large portion of money is
typically collected through the Customs unit of the Ministry of Finance; and collection from other
Ministries and Agencies typically represents fees or fines paid.
Mustofiats which are basically represent Ministry of Finance in provinces performed well and this shows
14 percent increase when compared to the same period in 1392. Meanwhile, the remaining agencies as
shown in the table below not performed well and lower than the previous year, particularly Customs
and STO.
Table 2.4 Collection by Agency
In millions of Afghanis 1392 1392 1393 1393 % Cha nge

Q4 Q4 YTD Q4 Q4 YTD on 1392
Ministry of Finance 26626 84732 18795 75570 -29%
Mus tofi a ts 2074 5842 2354 10495 14%
Cus toms 15341 47319 8265 35890 -46%
La rge Ta xpa yer Offi ce 5667 18014 5249 16767 -7%
Medi um Ta xpa yer Offi ce 3239 11874 2509 10504 -23%
Sma l l Ta xpa yer Offi ce 181 1192 313 1477 73%
Other Mi ni s try of Fi na nce 123 492 103 437 -16%
Other Ministries 5060 18061 4735 11017 -6%

Mi ni s try of Tra ns port a nd Avi a ti on 1256 4466 452 1522 -64%
Mi ni s try of Interi or 641 2832 931 3200 45%
Mi ni s try of Communi ca ti on 1992 3256 233 944 -88%
Mi ni s try of Forei gn Affa i rs 810 1490 744 1191 -8%
1
Mi ni s try of MDSA 677 2383 47 2033 -93%
Other Budgeta ry Uni ts -316 3634 2327 2127 -836%
1/ Ma rtyrs , Di s a bl ed a nd Soci a l Affa i rs
Revenue Performance in Grants
Total revenue from grants by end of the year received amounted Afs 179.7 billion, of this Afs 119.3
billion provided by Foreign Governments and the remaining Afs 60.4 billion was granted by International
organizations. However, total grants disbursement in 4th quarter 1393 increased by 27 percent,
meanwhile there was a huge decline (35 percent) in International Organization aid inflow by end of 4th
quarter 1393.
Table 5.2 in the Appendix sets out the operating and development grants in detail.

Expenditure
Table 3.1 Expenditure Summary
1392 1392 1393 1393 1393 1393 1393 1393

Q4 Q4 Annua l Annua l Q4 Q4 %
Actua l YTD Budget Al l oca ted Prel i m. YTD Growth on 1392 Of Al l oc.
TOTAL GROSS EXPENDITURES 98009 277947 428379 422844 95618 304095 -2% 23%
Operating Budget 62088 197746 280473 276810 72157 227891 16% 26%
Development Budget 35921 80201 147906 146034 23461 76204 -35% 16%
Di s creti ona ry Budget 7942 18903 0 46424 789 9422 -90% 2%
Non-di s creti ona ry Budget 27979 61298 147906 99610 22671 66781 -19% 23%
TOTAL NET EXPENDITURES 98005 277911 0 0 95611 304062 -2%

RECURRENT EXPENDITURES 76096 228821 N/A 321258 78543 255800 3% 24%
Compensation of Employees 38976 139475 162603 156013 41266 150157 6% 26%
Wa ges a nd Sa l a ri es 37358 133718 0 0 39685 144207 6%
Soci a l Benefi ts 1618 5757 0 0 1581 5950 -2%
Use of Goods and Services 34283 77642 N/A 143145 32390 85531 -6% 23%
Tra vel 782 2192 0 0 476 1993 -39%
Communi ca ti ons 1711 3992 0 0 1397 3955 -18%
Contra cted Servi ces 10944 25283 0 0 8597 27810 -21%
Repa i rs a nd Ma i ntena nce 5063 9605 0 0 7293 15620 44%
Uti l i ti es 1382 3220 0 0 2280 5710 65%
Fuel 2191 5809 0 0 6412 10524 193%
Other Us e of Goods a nd Servi ces 12211 27541 0 0 5935 19919 -51%
Interest 96 268 2400 2400 75 349 -21% 3%
Social Transfers 2741 11436 19700 19700 4811 19763 76% 24%
Subs i di es 399 900 0 0 3 453 -99%
Gra nts 72 233 0 0 96 411 34%
Soci a l Securi ty 2376 10299 0 0 4748 18731 100%
Other Soci a l Tra ns fers -106 3 0 0 -36 168 -66%
ACQUISITION OF ASSETS 0 0
Gross Acquisition of NFA 21913 49126 N/A 101586 17075 48295 -22% 17%
Net Acquisition of NFA 1 21909 49090 0 0 17068 48262 -22%
Sa l e of La nd a nd Bui l di ngs -4 -36 0 0 -7 -33 61%
Bui l di ngs a nd Structures 23325 36886 0 0 7819 22203 -66%
Ma chi nery / Equi pment 4385 8118 0 0 2188 6135 -50%
Va l ua bl es 0 1 0 0 0 0 -100%
La nd 96 606 0 0 34 571 -64%
Ca pi ta l Adva nce Pa yments -5893 3514 0 0 7034 19384 -219%
1/ Net of proceeds from Sa l e of Non-Fi na nci a l As s ets

Expenditure Facts
- Compensation of employees is the best performing expenditures line during the fourth quarter
1393. Overall expenditures declined during the fourth quarter. This was the result of the
Presidents decree to pay only salaries and wages during the quarter.
- The discretionary development budget is worst performing expenditure line in the quarter, as it
is the most easily cut to make savings.
- Expenditures declined during the quarter because of poor cash balances and decreased
revenues collection; falls in cash balances left limited reserve and restricted the ability to make
payments.
Financial year 1393 was an exceptional year due to occurrence of political and security transitions and
delays in signing Bilateral Security Agreement. These together increased the uncertainties over the
countrys economy, which resulted in lower number of firms registry, lower numbers of job creation,
revenues collected, and affected overall budget expenditures. The government was only able to pay
wages and salaries and therefore halted most other expenditures lines.
The expenditures in the year 1394 have fallen, as a result of the need to be quite austere because of
problem in availability of cash for the year. The development budget is made with the assumption that
only 50 percent of this will be spent during the
Expenditure Performance
year. Afs Millions
Contingent funds are used in social security, 160000

Previous Year Target
certain policy codes, and the Kabul Bank case. 140000
120000 Current Year

The social security includes transfers to 100000
martyrs, disables, and pension to retirees. Its 80000
60000
the government policy to reduce contingency 40000
to a 3 percent of the total national budget in 20000
0
line with the International Monetary Fund Q1 Q2 Q3 Q4
(IMF) recommendation over the coming years.
The total expenditure on contingencies was Source: Government of Afghanistan
budgeted at 7.8 percent of the total budget for

1393, an increase on the figure from 1392 (6.8 percent).

Table 3.2 Fiscal Sustainability
1392 1393 1393 1393 1393

Q4 Q1 Q2 Q3 Q4
Domestic Revenue/Total 37% 42% 34% 46% 28%

Customs Revenue/Total 8% 11% 8% 9% 7%
Grants/Total 63% 58% 66% 54% 72%
Op. Spending/Dom. Rev. 185% 164% 242% 256% 251%
Salaries/Total Expenditure 40% 63% 48% 50% 43%
Interest/Expenditure 0.1% 0.1% 0.1% 0.2% 0.1%
Financing/Expenditure 22% 17% 16% 13% 18%
Overall fiscal sustainability has been worsening over the past quarters as revenue collection was
consistently below the target. However, the new unity government is now in place, which has a strong
commitment to improve revenues through structural reforms and introducing new systems in order to
increase efficiency collection. A large influx of donor support in the last quarter has led to an apparent
worsening in the domestic revenue to total ratio even though domestic revenue increased in the last
quarter.
Key Expenditure vs Target

Afs Millions
120000
Salary G+S Capital
100000
80000
60000
40000
20000
0
1 2 3 4
Source:FPD, Ministry of Finance
Allocated Budget Numbers in light colours

Expenditure by Ministry
Total operating spending saw around 81 percent execution (a fall on the previous years execution of 96
percent, even after the budget revision) while total development spending reaches to 51 percent by the
end of quarter four 1393. Ministry of Transport and Aviation is the best performance entity followed by
Afghanistan Independent Land Authority, Ministry of Counter Narcotics, and Ministry of Agriculture in
spending their portion of development budget during the fourth quarter of the year 1393 while Ministry
of Woman Affairs and Central Statistics Office are the worst performing entities during the quarter. In
part this is the result of good procurement planning and capacity building efforts in the Ministry of
Agriculture.
The Ministry of Transport and Aviation and Ministry Counter Narcotics spent more than their original
budget due to a sudden rise in their expenditure patterns during the last quarter.
Table 5.5 in the Appendix sets out expenditure by Ministry in detail.
The Government also targets expenditures towards improving social welfare generally, and has a
general policy of expenditure aimed at reducing poverty. There are also specific expenditures directly
targeted towards poverty and social welfare, some of these key expenditures are set out in Table 3.3.
Table 3.3 Key Poverty Targeting Expenditures
1392 1393
Q4 Budget Q4 % Budget
Directorate of Kochis 72 93 48 52%
Ministry of Education
Technical and Vocational Training 1612 3553 2079 59%
Ministry of Information and Culture
Broadcasting and Youth 0 136 0 0%
Ministry of Frontiers and Tribal Affairs
Social Protection of Tribes and Borders Management 0 563 0 0%
Micro Finance Investment Support Facility 0 46 0 0%

Debt and Financing
No updated data for the Quarter 4 of 1393 was made available; figures for the Q3 are estimates.
Total external debt during the second quarter 1393 is Afs 135.4 billion; we estimate this should have
fallen further during Q3 as a result of Russian debt forgiveness. The main stakeholders from
International organizations are World Bank and Asian Development Bank as they continue to provide
concessional loans. We have loans outstanding equivalent at around 50 percent of our IMF quota as a
result of borrowing under two ECF programs. In this second program however we have not borrowed
the full entitlement, maintaining a low debt to the Fund.
Table 4.1 Debt Stock

Central Government Debt Stock
Change
In Million Afs 1393 Q1 1393 Q2 1393 Q3 YoY QoQ
EXTERNAL 138,066 134,558 135,434 -2% 0.7%

International Organisations 77,318 72,452 73,345 -5% 1.2%
IMF 8,567 7,374 7,472 -13% 1.3%
World Bank 24,121 23,841 24,096 0% 1.1%
Islamic Development Bank 2,003 2,044 2,158 8% 5.6%
Asian Development Bank 42,526 39,090 39,516 -7% 1.1%
Others 101 103 103 2% 0.0%
Foreign Governments 60,748 62,106 62,089 2% 0.0%
Russian Federation 53,281 54,520 54,520 2% 0.0%
Saudi Fund 2,676 2,696 2,669 0% -1.0%
Others 4,792 4,890 4,899 2% 0.2%
DOMESTIC 30,415 30,996 30,996 2% 0.0%

Bonds (Non-Tradable) 30,415 30,996 30,996 2% 0.0%
Commercial Banks - - - - -
TOTAL CENTRAL GOVERNMENT DEBT 168,481 165,554 166,430 -1% 0.5%
In Percent
1
Portion Short Term Debt 0 0 0 - -
Implied Maturity of Debt (Years) 142.4 245.0 206.6 45.1% -15.7%
-
Implied Interest Rate of Debt 0.1% 0.1% 0.1% 13.7% 43.4%
1/ Less than one year

The public sector borrowing requirement is the integrated budget balance. However, it also adds any
revenues from the sale of non-financial assets to obtain a true picture of the budget financing
requirement. If there are any net sales of non-financial assets, the public sector borrowing requirement
will be higher than the core budget balance. The high Treasury Single Account (TSA) financing reflects
the use of cash in the bank throughout the year to meet the revenue shortfall; initially the
Government started with a carry forward of Afs 20 billion from 1392, however by the end of this fiscal
year all but Afs 8 billion has been expended.
The high positive transactions in previous quarters represented the need to raise resources this year to
meet the deficit; the high negative value now and in 1392 represents, in large part, a saving made to the
accounts due to the cutbacks in spending at the end of the year.
Table 4.2 Transactions in Financial Assets and Liabilities

In millions of Afghanis
1392 1393
Q4 Q4
Actual Prelim. % Change
TRANSACTIONS IN FINANCIAL ASSETS AND LIABILITIES 6,141 -7,332 -219%
NET ACQUISITION OF FINANCIAL ASSETS 2,435 -9,462 -489%

Domestic 2,435 -9,462 -489%
Currency and Deposits -5,187 -10,222 97%
Treasury Single Account -2,670 -12,524 369%
Donor Accounts -2,516 2,301 -191%
Other Deposit Accounts (1) -2 1 -130%
Loans -501 -799 59%
Other Accounts Receivable -22 2,207 -9937%
Other Assets 8,147 -648 -108%
Foreign 0 0 -
NET ACQUISITION OF FINANCIAL LIABILITIES 3,705 2,130 -43%

Domestic 70 2,215 3048%
Accounts Payable -1,046 -998 -5%
Pension Liabilities 0 133 -95373%
Other Payables 0 0 -100%
Other Liabilities (1) 1,116 3,080 176%
Foreign 3,635 -85 -102%
Foreign Currency 3,178 11 -100%
Loans 458 -96 -121%
Source: FPD using AFMIS data downloaded on the 17 August 2014

Table 4.3 Transactions in Non-Financial Assets and Liabilities
In millions of Afghanis
1392 1393
Q4 Q4
NET ACQUISITION OF NONFINANCIAL ASSETS 21,909 17,068 -22%
Land and Buildings 23,417 7,847 -66%
Purchase of Land and Buildings 23,421 7,853 -66%
Buildings and Structures 23,325 7,819 -66%
Land 96 34 -64%
Sale of Land and Buildings -4 -7 61%
Sale of State-Owned Enterprises 0 0 -
Machinery and Equipment (>50,000) 4,385 2,188 -50%
Valuables 0 0 -100%
Other Acquisitions -5,893 7,034 -219%
Capital Advance Payments -5,893 7,034 -219%
In quarter 4 there were fewer expenditures on land and buildings and in general on the acquisition of
non-financial assets. This reflects the falls in Government expenditure, which fell primarily on code 22
(Goods and Services) and code 25 (Capital or Acquisition of Nonfinancial Assets).

CPI and International Prices
Background
Inflation in Afghanistan has been driven historically by changes in food prices; both the volatility of
international prices and local production levels have led to dramatic changes in the level of prices in the
country from year to year.
This however has moderated in recent times (see below), and price changes have become less volatile.
On average inflation has been historically around 8%, and we have seen this reduce in recent years, with
the Government now forecasting a rate of 4-5% going forward.
2008 saw large rises in the price of foods in Afghanistan; in part this was the result of both rises in
international prices, alongside falls in the local production following two years of low precipitation
leading to a drought. A second rapid increase in 2011 did not cause as dramatic effect on local prices; in
part because it did not coincide with a downturn in production in Afghanistan, necessitating
international imports. The falls in prices in 2009 coincided with a correction in international prices back
to trend, following the large spike in 2008.
Over time, in part as a result of Government stabilization policies, the rate of inflation in Afghanistan has
moderated considerable and is now in line with general inflation levels in the Asia region (around 4-5

percent for emerging and developing Asia1). Although the low inflation of 1393 was in part the result of
one off factors including a marked drop in rental prices, particularly in Kabul city, and moderate
international prices for food, and falling international prices for fuel at the end of the year, and the start
of 1394.
Monetary Policy and Statistics
The law establishing Da Afghanistan Bank (DAB) as the Central Bank of Afghanistan, sets out the key
objective as the achievement and maintenance of price stability in Afghanistan. In line with this aim
DAB targets the level of reserve funds held; conducts foreign exchange auctions and conducts capital
notes auctions in order to allow commercial banks to invest reserves with DAB. Exchange rate auctions
are conducted on a twice weekly basis, and capital note auctions are conducted weekly giving DAB a
set of tools that can rapidly be used to influence the money supply. In addition DAB has both an
overnight deposit, and credit facility as a backup to interbank lending; and to help commercial bank
liquidity management. In the same vein DAB also require reserves be held at the value of 8 percent of
deposits; this tool is not frequently used to influence overall money supply however and its primary
purpose is as a stabilization tool.
The current CPI basket was determined by the National Risk and Vulnerability Assessment (NRVA), in
lieu of a full Household Income and Expenditure Survey. The Central Statistics Office (CSO) produces
inflation data on a monthly basis, covering Kabul, and 9 other provinces, in order to create both a
national and disaggregated picture of prices performance. The CPI calculation has increased in
extensiveness, covering 290 items, with over 10,000 price quotations collected.
International Prices and Local Prices
International prices for food have seen large spikes in both 2008, and 2011. The 2007/08 food price
crisis was the result of a number of factors including: changing diets over time in the developing world,
spikes in the cost of some agricultural input goods (including fuel and fertilizer), biofuel subsidies in the
US, declines in stocks of food, and a series of crop shortfalls around the world caused by the climate. In
addition, periods of instability in countries around the world have disrupted global food production.
Prices then fell again following the 2008 financial crisis, but steadily increased through to 2011.
International prices for fuel have dropped dramatically, returning to price levels seen back in 2005. This
large drop mirrors the fall seen back in the post-2008 period; a period that saw large slowdowns in
Afghan non-food prices as well. This fall is in part the result of expanded production of US shale oil,
alongside a decision by the OPEC group not to reduce production in order to push up prices. Smaller
effects have been caused by some increase in Libyan oil, and a decrease in demand from China with a
slowdown in economic growth.
For Afghanistan the large portion of wheat and petroleum is imported mostly from the immediate
neighbours like Pakistan, Uzbekistan, Turkmenistan, Iran, Russia, and Kazakhstan. This variety of import
sources ensures that there is some degree of stability in import prices, and import availability and that
local imports are more likely to follow international prices.
1
IMF World Economic Outlook, October 2014

Impacts of International Prices on CPI
The international prices have an impact on local prices, this impact is not immediate and it is not
apparent for every type of good. Local factors including oligopolistic competition in some markets,
regional price differences from international prices, and ample local production of a good determine
how much of an effect the international price changes have on local prices.
The major two international price impacts on local prices are for crude oil, and wheat prices both of
these make up significant direct or indirect portions of the consumer basket, and in both cases we have
some or entire reliance on
Inflation Uncertainty due to International Prices international imports. The
requirement for
8.00%
international imports of
7.00% wheat varies with the local
6.00% production, however
5.00% Afghanistan produces and
4.00%
refines no fuel locally, and is
dependent on international
3.00%
imports. Most of the
2.00% imports of fuel are from the
1.00% immediate region including
0.00% Turkmenistan, Uzbekistan,
2013 2014 2015 2016 2017 2018 2019 Iran, and Russia.
The above chart is generated by assuming that international prices could change from the baseline
assumption according to their past variance. Using the WEO forecast as a base we generate scenarios
around the WEO forecast for international prices assuming the prices could either follow a path above
or below the WEO. Very large increases are less likely, as are very large falls. A thousand of these
scenarios, and the resulting inflation outcomes, are generated and the results are shown above. The
most likely inflation outcomes are the darker areas with the outer range the least likely2.
A regression was run with international prices of wheat and crude oil, against local wheat prices and
local prices for petroleum. In general it was found, with a few months lag, that the international price
for both has a positive impact on the local prices; that impact is smaller for wheat than for oil which is
to be expected given the local supply availability for the latter. The impact is less than one, which again
is to be expected given both the processing costs, transportation costs and market structure in
Afghanistan. This means that petroleum prices locally will not be expected to drop as significantly as
crude oil prices have in the international market.
The impact on local fuel prices takes double the time to materialize as the impact on local wheat prices
reflecting the longer processing time between crude oil and petroleum on the Afghan market. A 5%
shock to international fuel prices would be expected to reduce local prices by around 1.7%; while a
shock of 5% to wheat prices would be expected to reduce local prices by 0.7%.
2
The River Chart has ranges of probability the outer range shows the 95% probability (i.e. there is a 95%
probability inflation will be within this range); the next shows the 80% probability; the next the 50% probability
and finally the dark line shows the baseline estimate.

The recent falls in the prices of crude oil internationally has slightly pushed down local prices.
International fuel prices began to fall in October of last year (2014), while local prices began to reduce
around December, falling 7.8 percent in one month. The fall in international fuel prices thus far is
around 50 percent from September, 2014, however this is expected to level off, and start to recover
over the next few years with futures prices showing a consistent expected increase. During
September to December local prices fell 11 percent, and international prices dropped by 36 percent;
reflecting the stickiness in prices in the local market.
Future price changes for wheat and fuel are expected to remain moderate, with little increase in wheat
prices expected. Increases in the fuel prices (although they will likely remain far below the 2014 prices
for the next few years), will create some pressure on local prices (as will any likely changes to sales
taxes, import taxes etc.).

Annex
Table 5.1 Revenue Collection by All Provinces
In millions of Afghanis 1392 1393 YT D T arget Annual %
Q4 Q4 1393 T arget - T arget Annual
Actual Prelim. Q4 Actual T arget
% Increase YT D % (+/ -)
R EVEN U ES exc. grants 33,591.1 23,847.7 -29% 30,774.0 -23% 133,800.0 18%
Kabul 552 652 18% 661 -1% 2,876 23%

Kapisa 37 35 -5% 31 13% 136 26%
Parwan 62 70 12% 58 19% 254 27%
Wardak 48 43 -11% 46 -7% 200 21%
Logar 37 31 -17% 37 -17% 161 19%
Nangarhar 2,912 2,814 -3% 3,119 -10% 13,563 21%
Laghman 36 45 27% 39 17% 168 27%
Pangsher 25 18 -29% 20 -10% 87 21%
Baghlan 91 77 -15% 76 1% 331 23%
Bamyan 32 46 42% 27 69% 119 39%
Ghazni 79 80 1% 77 3% 335 24%
Paktika 70 39 -44% 42 -7% 183 21%
Paktiya 225 219 -2% 184 19% 801 27%
Khost 246 174 -29% 324 -46% 1,410 12%
Kunar 57 57 1% 91 -37% 398 14%
Nuristan 18 14 -23% 11 30% 47 30%
Badakhshan 93 70 -25% 77 -10% 336 21%
Takhar 86 70 -18% 82 -14% 355 20%
Kunduz 256 158 -38% 344 -54% 1,497 11%
Samangan 33 38 16% 29 29% 128 30%
Balkh 2,385 1,215 -49% 2,556 -52% 11,112 11%
Saripul 30 35 17% 24 48% 103 34%
Ghor 33 27 -18% 38 -30% 166 16%
Dikondy 25 18 -31% 18 -4% 80 22%
Uruzgan 28 16 -41% 18 -11% 80 20%
Zabul 21 22 7% 28 -21% 120 18%
Kandahar 876 792 -10% 763 4% 3,319 24%
Jawzjan 74 57 -23% 64 -11% 278 20%
Faryab 1,719 1,005 -42% 1,158 -13% 5,035 20%
Helmand 171 163 -5% 166 -2% 720 23%
Badghis 28 31 9% 23 32% 101 30%
Herat 3,475 3,322 -4% 4,974 -33% 21,627 15%
Farah 1,092 727 -33% 534 36% 2,324 31%
Nimroz 1,865 1,606 -14% 1,427 13% 6,204 26%
Central Ministries 16,774 10,064 -40% 13,604 -26% 59,147 17%
Offshore Payments 0 0 - 0 - 0 -

Table 5.2 Operational and Development Grants
All Values are in Million Afs
1392 1392 1392 1393 1393 1393
% of % of
Qtr 4 Qtr 4 Total Qtr 4 Qtr 4 Total
Qtr YTD Qtr YTD
Afghanistan Reconstruction Trust Fund (ARTF) 2,536 14,157 10% 0 0 0%
Law & Order Trust Fund (LOTFA) 5,760 27,525 20% 7,067 7,067 34%
1
CSTC-A MoD 16,232 73,111 52% 11,417 11,417 55%
CSTC-A 1 MoI 6,392 24,590 18% 2,409 2,409 12%
1/ Combined Security Transitional Command Afghanistan

Source: AFMIS data extract 17 August 2014
All Values are in Million Afghanis

RECURRENT BUDGET 11,417
TF098459-AF Third Emergency National Solidarity Project ARTF 5,215
93962-Second Education Quality Imporvement Project ARTF 1,049
H792- Aghanistan Rural Access Project Worl d Ba nk 540
15005 System Enhancement for Health Action in Transition Project
ARTF 423
( SEGAT)
National Solidarity Program ( Italy ) Mul ti Donor Gra nts 385
10024 AF-Second Public Financail Management Reform Projet ARTF 384
13093- Afghanistan Rural Access Project ARTF 214
Source: AFMIS data extract 17 August 2014

Table 5.3 Operating Budget Expenditure
In millions of Afghanis 1392 1392 1393 1393
Q4 Q4 YT D Q4 Q4 YT D Budget Allocated % Alloc.
Actual Actual Prelim. Prelim. % Change

T OT AL GR OSS EXPEN D IT U R ES 62,088 197,746 72,157 227,891 280,472 276,810 26% 16%
T OT AL N ET EXPEN D IT U R ES (2) 62,084 197,710 72,150 227,858
R ECU R R EN T EXPEN D IT U R ES 58,020 189,392 67,845 218,460 268,376 263,606 26% 17%
Compensation of Employees 38,976 139,475 41,266 150,157 162,603 156,013 26% 6%
of which operating budget 38,976 139,475 41,266 150,157 6%
Wages and Salaries 37,358 133,718 39,685 144,207 6%
Wages and Salaries in Cash 30,948 112,834 33,418 123,704 8%
Wages and Salaries in Kind 6,616 21,270 6,423 20,679 -3%
Social Benefits 1,618 5,757 1,581 5,950 -2%
Social Benefits - in Cash 493 1,727 284 1,139 -42%
Social Benefits - in Kind 0 0 0 0 -
U se of Goods and Services 16,207 38,213 21,752 48,250 83,673 85,493 25% 34%
Travel 676 1,828 409 1,633 -40%
Communications 1,695 3,886 1,390 3,911 -18%
Contracted Services 623 1,531 284 1,286 -54%
Repairs and Maintenance 5,028 9,502 7,232 15,318 44%
Utilities 1,317 3,025 2,245 5,435 70%
Fuel 2,119 5,640 6,378 10,443 201%
Other Use of Goods and Services 4,749 12,801 3,814 10,225 -20%
Interest (1) 96 268 75 349 2,400 2,400 3% -21%

To Non-Residents 96 268 75 349
Social T ransfers 2,741 11,436 4,752 19,704 19,700 19,700 24% 73%
Subsidies 399 900 3 453 -99%
Grants 72 233 37 352 -49%
Social Security 2,376 10,299 4,748 18,731 100%
Other Social Transfers -106 3 -36 168 -66%
Social Assistance 0 8 88 201 -67498%
Advance Subsides, Grants -106 -5 -123 -33 16%
ACQU ISIT ION OF ASSET S

Gross Acquisition of N FA 4,068 8,353 4,312 9,431 12,096 13,204 33% 6%
N et Acquisition of N FA 4,064 8,317 4,305 9,398 6%
Sale of Land and Buildings -4 -36 -7 -33 61%
Buildings and Structures 2,533 4,400 3,091 6,061 22%
Machinery / Equipment (>50,000) 1,435 3,379 1,167 2,739 -19%
Valuables 0 1 0 0 -100%
Land 96 565 24 451 -75%
Capital Advance Payments 4 7 30 179 673%

Table 5.4 Development Budget Expenditure
In millions of Afghanis 1392 1392 1393 1393
Q4 Q4 Y T D Q4 Q4 Y T D Alloca te d % Alloc. % Cha nge
Actua l Actua l P re lim. P re lim.
T OT AL GR OS S E XP E N D IT U R E S 35,921 80,201 23,461 76,204 147,410 16% -35%
Discretionary Budget 7,942 18,903 789 9,422 46,424 2% -90%
Non-discretionary Budget 27,979 61,298 22,671 66,781 100,986 22% -19%
T OT AL N E T E XP E N D IT U R E S (2) 35,921 80,201 23,461 76,204
U se of Goods a nd S e rvice s 18,076 39,429 10,638 37,281 58,549 18% -41%
Travel 105 364 67 359

Communications 16 106 8 44
Contracted Services 10,321 23,751 8,313 26,524
Repairs and Maintenance 35 103 60 302
Utilities 65 195 36 276
Fuel 72 169 35 81
Other Use of Goods and Services 7,462 14,740 2,120 9,694
Tools and materials (< 50,000) 3,879 6,366 653 1,399
Other Expenses 1,324 1,601 49 2,348
Advances and Return of Expenditure 2,259 6,773 1,418 5,947
ACQU IS IT ION OF AS S E T S
Gross Acquisition of N FA 17,845 40,772 12,763 38,864 88,861 14% -28%

N e t Acquisition of N FA 17,845 40,772 12,763 38,864
Sale of Land and Buildings 0 0 0 0
Buildings and Structures 20,791 32,486 4,728 16,142
Machinery / Equipment (>50,000) 2,950 4,739 1,021 3,396
Valuables 0 0 0 0
Land 0 40 10 120
Capital Advance Payments -5,897 3,507 7,004 19,206

Table 5.5 Ministry Expenditure
In mi l l i ons of Afgha ni s 1392 1392 1393 1393 1393 1393 1393
Q4 Annual Q1 Q2 Q3 Q4 Annual Budget Allocated % Allocated % Change
Actual Actual Prelim Prelim Prelim Prelim Prelim
TOTAL GROSS EXPENDITURES 97,780.4 277,662.8 51,554.8 78,981.6 77,062.9 95,364.4 302,746.1 427,934.6 427,934.6 71% -2%
Operating Budget 62,051.7 197,604.9 38,497.4 57,724.1 59,189.6 71,869.0 226,811.4 280,340.2 280,340.2 81% 16%
Development Budget 35,674.4 80,057.9 13,674.7 21,996.3 17,873.3 23,495.4 75,934.7 147,594.4 147,594.4 51% -34%
Ministry of Interior 16,952.9 50,565.5 10,091.9 12,246.3 15,890.4 21,003.0 59,231.6 66,824.9 71,037.4 83% 24%
Opera ti ng Budget 16,835.8 50,269.8 10,066.1 12,089.9 15,767.3 20,861.8 58,785.0 62,037.5 66,250.0 89% 24%
Devel opment Budget 117.1 295.7 25.8 156.4 123.1 141.3 446.6 4,787.4 4,787.4 9% 21%
Ministry of Defence 25,262.1 66,388.8 10,128.0 17,664.4 17,062.0 23,813.8 68,668.2 101,676.0 106,470.8 64% -6%
Devel opment Budget 6,736.5 8,305.5 0.0 160.9 370.8 2,209.2 2,740.8 3,105.4 3,105.4 88% -67%
Ministry of Foreign Affairs 1,202.6 3,510.7 550.3 1,540.0 921.2 814.6 3,826.0 4,446.7 4,500.7 85% -32%
Opera ti ng Budget 1,152.8 3,249.0 500.5 990.2 913.8 811.0 3,215.5 3,200.0 3,254.0 99% -30%
Devel opment Budget 49.8 261.7 49.7 549.8 7.4 3.6 610.6 1,246.7 1,246.7 49% -93%
National Security Council 0.0 0.0 62.8 64.3 64.2 76.2 267.5 227.9 362.8 74% -
Opera ti ng Budget 0.0 0.0 62.8 64.3 64.2 76.2 267.5 88.5 223.3 120% -
Devel opment Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 139.5 139.5 0% -
Presidential Protective Service 317.9 1,225.6 232.4 390.0 251.8 213.0 1,087.2 944.5 1,105.8 98% -33%
Opera ti ng Budget 292.5 1,136.9 223.2 390.0 232.6 232.2 1,078.0 944.5 1,105.8 97% -21%
Devel opment Budget 25.4 88.7 9.2 0.0 19.2 -19.2 9.2 0.0 0.0 - -175%
General Directorate of National Security 2,275.0 9,722.4 2,706.9 2,825.8 2,820.4 2,778.1 11,131.1 11,419.5 11,219.5 99% 22%
Devel opment Budget 16.4 125.5 0.0 24.7 35.1 0.0 59.7 148.1 148.1 40% -100%
Total Security 46,010.4 131,412.9 23,709.4 34,666.6 36,945.7 48,622.5 143,944.2 185,311.5 194,334.3 74% 6%
Devel opment Budget 6,945.1 9,077.0 84.7 891.8 555.6 2,334.9 3,866.9 9,287.6 9,287.6 42% -66%
Presidents Office 634.0 1,919.1 442.1 449.5 472.2 451.3 1,815.1 2,097.6 2,346.3 77% -29%
Opera ti ng Budget 550.5 1,764.9 394.4 428.6 466.6 451.3 1,740.9 1,783.5 2,032.2 86% -18%
National Assembly Meshanro Jirga 148.7 578.6 127.6 145.5 133.1 123.9 530.2 588.8 616.3 86% -17%
Opera ti ng Budget 134.9 513.2 127.6 145.5 133.1 123.9 530.2 518.8 546.4 97% -8%
National Assembly Wolesi Jirga 329.3 1,275.0 358.9 289.2 385.8 335.6 1,369.5 1,293.7 1,371.6 100% 2%
Opera ti ng Budget 314.4 1,259.3 358.9 289.2 385.8 335.6 1,369.5 1,252.0 1,329.9 103% 7%
Supreme Court 467.9 1,615.3 743.7 859.9 746.6 773.8 3,123.9 3,321.7 3,324.4 94% 65%
Opera ti ng Budget 440.3 1,510.7 737.7 819.5 732.7 734.8 3,024.7 3,000.9 3,003.7 101% 67%
Devel opment Budget 27.6 104.6 6.0 40.4 13.9 38.9 99.2 320.7 320.7 31% 41%
Ministry of Justice 241.8 684.5 120.0 167.4 150.3 199.2 637.0 1,100.4 1,119.2 57% -18%
Administrative Affairs 711.2 2,140.8 370.7 740.0 275.7 416.7 1,803.0 939.2 1,647.9 109% -41%
Opera ti ng Budget 563.5 1,949.1 370.7 625.5 222.1 416.7 1,635.0 750.0 1,458.7 112% -26%
Ministry of State and Parliamentart Affairs 45.4 117.2 13.5 30.7 24.1 24.0 92.3 117.0 135.3 68% -47%
Ministry of Haj and Religious Affairs 288.0 862.6 126.4 184.0 308.1 200.8 819.2 1,093.8 1,116.2 73% -30%
Attorney General 325.9 1,080.4 240.5 313.2 285.9 333.6 1,173.1 1,430.3 1,437.2 82% 2%
Opera ti ng Budget 284.9 998.8 228.4 297.3 273.2 296.1 1,095.1 1,163.9 1,170.8 94% 4%
Election Commission 42.7 128.7 23.1 29.4 31.2 30.5 114.1 153.5 194.0 59% -29%
Devel opment Budget 8.1 16.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - -100%
IARCSC 178.4 670.8 85.0 157.7 118.6 119.6 480.9 706.2 718.6 67% -33%
Independent Commission for Overseeing the Implementation of Cons 95.0 316.3 11.6 90.7 90.0 85.3 60.1 67.3 69.3 87% -10%
The High office of Oversight and Anti Corruption 0.0 0.0 0.0 0.0 0.0 0.0 0.0 307.9 308.7 0% -
Independent Directorate of Local Governance 995.7 3,046.8 455.2 608.5 607.0 564.3 2,235.0 4,410.1 4,454.7 50% -43%
Afghanistan Independent Human Rights Commission 16.9 41.3 0.0 0.0 0.0 0.0 0.0 97.2 53.2 0% -100%
Opera ti ng Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 44.0 0.0 - -
Independent Electoral Complaints Commission 0.0 0.0 0.0 0.0 0.0 0.0 0.0 175.4 175.4 0% -
Total Governance, Rule of Law and Human Rights 4,504.0 14,436.2 3,118.2 4,065.7 3,628.5 3,658.5 14,253.4 17,802.7 19,035.1 75% -19%
Opera ti ng Budget 3,704.4 12,423.3 3,144.7 3,899.2 3,351.7 3,396.8 13,323.7 13,184.8 14,137.9 94% -8%
Devel opment Budget 745.1 2,013.0 590.8 905.3 276.8 261.7 929.7 4,617.9 4,617.9 20% -65%

Ministry of Public Works 5,947.3 16,309.5 2,587.2 3,352.0 3,620.2 5,003.8 14,563.2 23,570.0 26,902.5 54% -16%
Opera ti ng Budget 819.3 2,325.2 409.1 1,436.2 589.1 1,493.4 3,927.7 529.7 3,862.1 102% 82%
Devel opment Budget 5,128.0 13,984.3 2,178.1 1,915.9 3,031.1 3,510.4 10,635.5 23,040.4 23,040.4 46% -32%
Ministry of Transport and Aviation 850.7 1,741.2 46.4 350.7 283.8 134.0 814.9 401.2 406.2 201% -84%
Devel opment Budget 687.9 1,196.5 0.0 278.0 219.5 62.5 559.9 123.2 123.2 454% -91%
Ministry of Communication 899.8 1,777.8 113.8 177.1 360.9 262.3 914.0 2,811.4 2,816.0 32% -71%
Ministry of Energy and Water 3,524.3 6,350.0 723.9 1,553.3 1,375.6 966.1 4,618.8 10,969.3 11,028.6 42% -73%
Devel opment Budget 3,321.3 5,790.8 622.1 1,414.2 1,206.3 827.0 4,069.5 10,439.3 10,439.3 39% -75%
Water Supply and Canalization Corporation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 795.3 795.3 0% -
Da Brishna Shirkat 1,366.3 2,082.6 183.0 861.8 1,294.2 1,583.9 3,922.9 7,266.1 7,266.1 54% 16%
Devel opment Budget 1,366.3 2,082.6 183.0 861.8 1,294.2 1,583.9 3,922.9 7,266.1 7,266.1 54% 16%
Ministry of Urban Development 584.4 1,326.2 53.7 182.4 104.9 115.1 456.1 1,433.5 1,450.6 31% -80%
Civil Aviation Authority 0.0 0.0 32.3 66.7 70.5 241.4 410.9 2,326.6 2,476.9 17% -
Devel opment Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1,960.6 1,960.6 0% -
Independent Board of new Kabul 44.6 155.1 28.7 13.5 27.1 15.6 84.9 0.0 0.0 - -65%
Ministry of Mines and Industries 563.4 1,743.2 276.2 239.8 468.7 266.3 1,250.9 2,331.7 2,382.3 53% -53%
Geodesy and Cartography Office 93.5 190.6 24.1 30.3 36.5 29.1 120.1 138.0 141.2 85% -69%
Directorate of Environment 51.6 178.5 37.9 45.9 47.5 51.3 182.6 272.3 283.0 65% -1%
Afghanistan High Atomic Energy Commission 8.6 28.4 6.5 5.4 9.9 7.0 28.8 39.5 40.1 72% -18%
Devel opment Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - -
Irrigation and canalization Shirkat 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3,495.0 3,495.0 0% -
Municipalities 435.6 880.0 324.8 198.0 240.8 636.7 1,400.3 0.0 0.0 - 46%
Devel opment Budget 435.6 880.0 324.8 198.0 240.8 636.7 1,400.3 0.0 0.0 - 46%
Total Infrastructure and Natural Resources 14,370.1 32,763.1 4,438.5 7,076.9 7,940.6 9,312.6 28,768.5 55,849.9 59,483.8 48% -35%
Opera ti ng Budget 1,633.4 4,956.1 883.7 2,142.4 1,296.4 2,335.8 6,658.2 3,273.1 6,907.0 96% 43%
Ministry of Education 12,148.5 34,930.0 6,226.7 9,182.0 10,641.4 12,180.7 38,230.7 44,257.8 45,479.5 84% 0%
Devel opment Budget 2,530.3 5,734.9 672.4 1,842.2 2,423.7 2,122.6 7,060.9 13,867.8 13,867.8 51% -16%
Ministry of Higher Education 2,032.8 4,677.1 1,110.1 1,124.9 1,720.1 1,294.9 5,250.0 8,099.0 8,130.9 65% -36%
Opera ti ng Budget 1,180.3 3,152.8 646.0 790.3 1,197.3 1,264.7 3,898.3 4,000.0 4,031.9 97% 7%
Devel opment Budget 852.5 1,524.3 464.1 334.6 522.8 30.2 1,351.7 4,099.0 4,099.0 33% -96%
Ministry of Information and Culture 381.4 1,064.7 89.4 151.4 144.1 131.8 516.6 665.1 684.0 76% -65%
Science Academy 44.0 200.8 34.7 48.3 35.4 58.4 176.8 190.9 196.3 90% 33%
Opera ti ng Budget 41.9 177.5 34.7 47.0 32.0 58.1 171.8 170.6 176.0 98% 39%
National Olympic Committee 75.9 385.2 14.1 66.8 75.0 47.0 202.9 312.0 317.2 64% -38%
Devel opment Budget 12.6 111.9 0.0 23.6 1.3 -4.0 20.9 84.0 84.0 25% -132%
Cricket Board 0.0 0.0 0.0 0.0 0.0 0.0 0.0 56.0 56.0 0% -
Football Federation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 226.8 226.8 0% -
General Directorate of Radio & Television 0.0 0.0 79.8 126.7 122.1 93.2 421.9 707.9 810.7 52% -
Total Education 14,682.6 41,257.7 7,554.7 10,700.1 12,738.0 13,806.0 44,798.9 54,515.4 55,901.3 80% -6%
Ministry of Public Health 3,730.8 10,284.7 1,418.0 4,695.1 1,979.5 4,805.5 12,898.2 17,186.9 18,184.7 71% 29%
Opera ti ng Budget 1,121.1 3,115.4 660.6 762.0 987.3 1,423.1 3,833.0 2,525.2 3,523.0 109% 27%
Devel opment Budget 2,609.7 7,169.3 757.5 3,933.2 992.1 3,382.4 9,065.2 14,661.7 14,661.7 62% 30%
Total Health 3,730.8 10,284.7 1,418.0 4,695.1 1,979.5 4,805.5 12,898.2 17,186.9 18,184.7 71% 29%
Opera ti ng Budget 1,121.1 3,115.4 660.6 762.0 987.3 1,423.1 3,833.0 2,525.2 3,523.0 109% 27%
Devel opment Budget 2,609.7 7,169.3 757.5 3,933.2 992.1 3,382.4 9,065.2 14,661.7 14,661.7 62% 30%

Ministry of Agriculture 2,943.5 6,503.8 871.6 1,194.7 2,938.7 1,467.9 6,472.9 8,383.4 8,482.6 76% -50%
Devel opment Budget 2,521.9 5,016.2 641.4 881.2 2,657.4 1,167.0 5,346.9 7,337.4 7,337.4 73% -54%
Ministry of Counter Narcotics 482.0 1,040.1 262.5 288.0 332.1 502.7 1,385.2 1,064.1 1,066.1 130% 4%
Devel opment Budget 422.3 872.6 230.8 246.8 290.7 456.1 1,224.4 909.1 909.1 135% 8%
Ministry of Rural Rehabilitation and Development 4,868.2 17,105.1 6,261.6 6,728.8 2,642.6 5,860.0 21,493.0 23,244.9 23,270.3 92% 20%
Devel opment Budget 4,609.3 16,456.8 6,153.6 6,608.0 2,506.3 5,711.9 20,979.8 22,734.9 22,734.9 92% 24%
Afghanistan Independent Land Authority 0.0 0.0 10.5 58.4 62.5 63.1 194.6 347.2 347.2 56% -
Total Agriculture and Rural Development 8,293.8 24,649.0 7,406.3 8,269.8 5,975.9 7,893.7 29,545.8 33,039.7 33,166.2 89% -5%
Ministry of Frontiers and Tribal Affairs 190.4 477.9 71.8 112.2 98.0 118.7 400.7 562.7 586.6 68% -38%
Ministry of Martyrs, Disabled and Social Affairs 2,776.3 11,996.6 2,473.5 7,117.3 5,574.2 5,075.4 20,240.4 2,382.5 17,160.7 118% 83%
Ministry of Refugees and Repatriates 69.4 274.3 46.7 57.5 104.3 126.7 335.1 331.8 452.0 74% 83%
Devel opment Budget 1.4 15.7 4.0 0.0 18.8 -2.2 20.6 122.6 122.6 17% -255%
Ministry of Women Affairs 78.3 229.9 36.5 44.8 41.9 42.4 165.7 236.0 237.1 70% -46%
Office of Disaster Preparedness 61.9 120.0 13.3 21.1 22.4 22.6 79.4 125.9 128.3 62% -64%
Directorate of Kochis 18.5 72.1 9.9 12.9 12.1 13.2 48.1 90.4 92.5 52% -29%
Total Social Protection 3,194.8 13,170.7 2,651.6 7,365.9 5,852.9 5,399.0 21,269.4 3,729.3 18,657.3 114% 69%
Ministry of Finance 2,390.4 7,876.7 974.9 1,663.7 1,371.9 1,426.0 5,436.5 6,421.6 7,822.5 69% -40%
Opera ti ng Budget 1,412.6 5,449.0 706.9 800.7 863.5 852.5 3,223.6 1,847.0 3,247.9 99% -40%
Devel opment Budget 977.7 2,427.7 268.0 863.0 508.4 573.5 2,212.9 4,574.6 4,574.6 48% -41%
Ministry of Commerce 215.4 589.8 106.6 166.4 379.8 202.9 855.8 754.4 968.2 88% -6%
Ministry of Economy 181.2 568.4 97.0 145.3 106.5 98.9 447.7 608.9 610.0 73% -45%
Control and Audit Office 85.5 291.0 38.2 105.5 89.2 79.8 312.7 721.0 735.0 43% -7%
Central Statistics Office 52.9 231.4 31.4 46.2 41.3 40.3 159.2 433.4 435.3 37% -24%
Afghanistan National Standard Authority 68.6 131.3 10.0 14.4 13.1 18.6 56.0 110.9 113.9 49% -73%
Total Economic Gov. and Private Sector Devel't 2,993.8 9,688.5 1,258.1 2,141.5 2,001.8 1,866.5 7,267.8 9,050.2 10,685.0 68% -38%
Opera ti ng Budget 1,685.7 6,350.7 871.8 1,054.8 1,306.7 1,092.2 4,325.5 2,814.2 4,449.0 97% -35%
Devel opment Budget 1,308.1 3,337.8 386.3 1,086.7 695.0 774.3 2,942.3 6,236.0 6,236.0 47% -41%
Afghanistan Investment Support Agency 0.0 0.0 0.0 0.0 0.0 0.0 0.0 532.3 532.3 0% -
Micro Finance Investment Support Facility for Afghanistan 0.0 0.0 0.0 0.0 0.0 0.0 0.0 161.3 161.3 0% -
Unallocated Reserves 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - -
Devel opment Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - -
Unspecified 0.0 0.0 0.0 0.0 0.0 0.0 0.0 50,755.3 8,344.0 0% -
Opera ti ng Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 42,411.3 0.0 - -
Total Unclassified 0.0 0.0 0.0 0.0 0.0 0.0 0.0 51,449.0 9,037.6 0% -
Opera ti ng Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 42,411.3 0.0 - -

Table 5.6 Program Expenditure
I n m i l l i o ns o f A fg ha ni s O P E R AT IN G BU D G E T D E V E LO P M E N T B U D G E T T OT AL BU D GE T
1393 1393 1393
A nnua l A l l o c a te d % A l l o c . A nnua l A l l o c a te d % A l l o c . A nnua l A l l o c a te d % A l l o c .
P re l i m P re l i m P re l i m
M i ni s try o f E d uc a ti o n 31,199.9 31,611.7 99% 7,060.9 14,473.1 49% 38,260.7 46,084.8 83%
General & Islamic Education 26,912.3 26,625.8 101% 2,104.2 6,200.5 34% 29,016.5 32,826.2 88%
Curriculum development & teacher training 971.3 1,166.4 83% 2,688.3 3,637.1 74% 3,659.6 4,803.5 76%
Technical and vocational training program 1,216.5 1,226.4 99% 862.7 2,358.9 37% 2,079.1 3,585.3 58%
Literacy and informal Education 545.5 623.8 87% 116.1 450.3 26% 661.6 1,074.0 62%
Education management 1,554.3 1,969.3 79% 1,289.6 1,826.4 71% 2,843.9 3,795.7 75%
Expenditure returns 0.0 0.0 - 0.0 0.0 - 0.0 0.0 -
Ministry of Agriculture , Irriga tion a nd Live stock 1,127.5 1,145.1 98% 5,346.9 9,211.1 58% 6,474.5 10,356.3 63%
Natural Resource Management 131.6 132.2 100% 986.5 1,957.0 50% 1,118.1 2,089.2 54%
Agriculture Production and Productivity 425.3 423.7 100% 1,544.9 2,491.3 62% 1,970.2 2,915.0 68%
Economic Regeneration 118.5 123.7 96% 2,734.4 4,563.7 60% 2,852.9 4,687.4 61%
Reform and Capacity Building 452.1 465.5 97% 81.1 199.1 41% 533.3 664.7 80%
Ministry of R ura l R e ha bilita tion a nd D e ve lopme nt 586.0 535.4 109% 20,433.6 22,994.7 89% 21,019.6 23,530.1 89%
Rural Infrastructure (RI) 72.1 0.0 - 2,839.7 8,052.8 35% 2,911.7 8,052.8 36%
Economic Regenration (ER) 0.0 0.0 - 503.4 1,443.7 35% 503.4 1,443.7 35%
Local Governance 0.0 0.0 - 17,090.5 13,498.1 127% 17,090.5 13,498.1 127%
Institutional Support Program (ISP) 513.9 535.4 96% 0.0 0.0 - 513.9 535.4 96%
Ministry of E ne rgy & W a te r 567.4 589.3 96% 5,898.3 10,657.1 55% 4,620.0 11,246.4 41%
Energy 30.9 47.0 66% 1,951.5 4,457.5 44% 1,366.0 4,504.5 30%
Water 376.7 380.0 99% 3,912.1 6,199.5 63% 3,086.6 6,579.6 47%
Admin & Fina nce 159.8 162.3 98% 34.7 0.0 - 167.4 162.3 103%
Ministry of Fina nce 3,820.5 3,247.9 118% 2,198.5 4,784.7 46% 6,019.0 8,032.6 75%
Public Financial Management 2,302.6 1,644.1 140% 1,092.4 2,718.2 40% 3,395.0 4,362.3 78%
Revenue Management 498.1 523.4 95% 398.2 620.3 64% 896.3 1,143.6 78%
Operation (Gerneral Adminisrtration) 994.9 1,052.6 95% 294.7 740.8 40% 1,289.6 1,793.5 72%
Policy Management 24.8 27.8 89% 413.2 705.3 59% 438.0 733.1 60%
Ministry of P ublic W orks 4,123.4 3,862.1 107% 10,422.0 23,081.4 45% 14,545.3 26,943.5 54%
Transportation Infrastructures 263.7 71.8 367% 10,422.0 23,081.4 45% 10,685.6 23,153.2 46%
Maintenance of Tranpsort Infrastructure 3,728.8 3,652.9 102% 0.0 0.0 - 3,728.8 3,652.9 102%
Admin & Finance 130.9 137.5 95% 0.0 0.0 - 130.9 137.5 95%
Ministry of P ublic H e a lth 3,844.4 3,523.0 109% 9,061.0 14,665.6 62% 12,905.4 18,188.6 71%
Institutional Development and Assessment (IDA) 46.9 47.2 99% 359.4 3,294.3 11% 406.3 3,341.4 12%
Health Service Provision 1,590.6 1,518.2 105% 8,701.1 11,310.9 77% 10,291.7 12,829.1 80%
Admin 2,207.0 1,957.6 113% 0.4 60.4 1% 2,207.4 2,018.1 109%
Inde pe nde nt D ire ctora te of Loca l Gove rna nce 2,061.2 2,476.2 83% 177.1 2,032.8 9% 2,238.3 4,509.0 50%
National Principals for Local Governance 14.0 22.3 63% 0.0 0.0 - 14.0 22.3 63%
Local Governance Management 1,816.5 1,986.8 91% 177.1 2,032.8 9% 1,993.6 4,019.6 50%
General Supporting Services 230.7 467.2 49% 0.0 0.0 - 230.7 467.2 49%
Ministry of U rba n D e ve lopme nt 239.1 267.1 90% 217.9 1,183.5 18% 457.0 1,450.6 32%
Planning & Urban Development 20.9 22.0 95% 70.8 233.2 30% 91.7 255.2 36%
Housing 9.4 10.2 92% 2.0 146.0 1% 11.4 156.2 7%
Urban Infrastructure 30.5 32.4 94% 103.6 690.2 15% 134.2 722.6 19%
Management & Operations 178.4 202.6 88% 41.4 114.1 36% 219.7 316.7 69%
Source: FPD using AFMIS data downloaded on the 2014 AFMIS data extract 17 August 2014

In millions of Afghanis OP E R AT IN G BU D GE T D E V E LOP ME N T BU D GE T T OT AL BU D GE T
1393 1393 1393
Annua l Alloca te d % Alloc. Annua l Alloca te d % Alloc. Annua l Alloca te d % Alloc.
P re lim P re lim P re lim
Ministry of T ra nsport 256.3 283.0 0.9 559.9 2,181.7 0.3 816.2 2,464.7 0.3
Land Transport Services 256.3 283.0 0.9 559.9 2,181.7 0.3 816.2 2,464.7 0.3
Ministry of Communica tion a nd Informa tion T e chnology 446.0 477.6 0.9 468.7 2,338.6 0.2 914.6 2,816.2 0.3
E - Afghanistan 95.4 99.7 1.0 468.7 2,338.6 0.2 564.0 2,438.3 0.2
ICT Literacy 24.3 27.1 0.9 0.0 0.0 - 24.3 27.1 0.9
General Administration & Management 326.3 350.9 0.9 0.0 0.0 - 326.3 350.9 0.9
Ministry of Comme rce a nd Industry 577.9 603.8 1.0 280.4 365.6 0.8 858.2 969.4 0.9
Private Sector and Industry Development 29.6 30.3 1.0 234.0 253.6 0.9 263.6 283.9 0.9
Trade Policy and Transit 249.8 269.5 0.9 8.2 17.3 0.5 258.0 286.7 0.9
Admin and Regulatory Services 298.4 304.0 1.0 38.2 94.6 0.4 336.6 398.7 0.8
Ministry of La bour, S ocia l Affa irs, Ma rtyrs a nd D isa ble d 20,059.8 16,314.8 1.2 285.1 846.1 0.3 20,344.9 17,160.9 1.2
Labor Support Program 6,573.0 4,981.0 1.3 268.3 804.8 0.3 6,841.3 5,785.8 1.2
Social services 403.7 442.3 0.9 5.7 13.5 0.4 409.4 455.8 0.9
Martyrs and Disabled 12,225.1 9,907.5 1.2 0.0 13.4 0.0 12,225.1 9,920.9 1.2
Administration & Finance 857.9 984.0 0.9 11.2 14.5 0.8 869.1 998.4 0.9
Expenditure returns 0.0 157.0 0.0 0.0 907.1 0.0 0.0 1,064.1 0.0
Ministry of D e fe nce 66,122.9 103,365.3 0.6 2,740.8 3,105.4 0.9 68,863.7 106,470.8 0.6
Cambat forces 48,640.4 63,344.2 0.8 2,740.8 3,105.4 0.9 51,381.2 66,449.6 0.8
Supportive forces 17,482.5 40,021.1 0.4 0.0 0.0 - 17,482.5 40,021.1 0.4
Ministry of W ome n's Affa irs 162.7 188.2 0.9 3.1 49.0 0.1 165.8 237.1 0.7
Women Support and Strengthening 8.6 8.5 1.0 0.0 0.0 - 8.6 8.5 1.0
Gender Development and policy monitoring 10.2 10.2 1.0 -0.3 5.8 0.0 9.9 16.0 0.6
Administration & Finance 143.9 169.5 0.8 3.3 43.2 0.1 147.3 212.7 0.7
Ministry of E conomy 205.4 260.1 0.8 242.9 349.9 0.7 448.3 610.0 0.7
Economic Policy and Strategy and Monitoring and Evaluation 139.5 168.3 0.8 208.1 234.1 0.9 347.6 402.5 0.9
Management & Operations 65.9 91.8 0.7 34.8 115.8 0.3 100.7 207.5 0.5
P re side nt's Office 1,748.8 2,032.2 0.9 74.2 314.2 0.2 1,822.9 2,346.5 0.8
Providing Services to the Prisedent 1,748.8 2,032.2 0.9 74.2 314.2 0.2 1,822.9 2,346.5 0.8
Ministry of H ighe r E duca tion 3,911.9 4,031.9 1.0 1,351.7 5,008.4 0.3 5,263.6 9,040.4 0.6
Providing higher education opportunities 31.5 33.6 0.9 1,351.7 5,008.4 0.3 1,383.2 5,042.0 0.3
Leadership & Management of Higher Education System 3,880.4 3,998.4 1.0 0.0 0.0 - 3,880.4 3,998.4 1.0
Civil S e rvice Commissoin 330.1 348.5 0.9 150.9 370.1 0.4 481.0 718.6 0.7
Appointments & Appeals 51.6 52.7 1.0 0.0 0.0 - 51.6 52.7 1.0
Public Administrative Reforms 42.0 41.3 1.0 0.0 0.0 - 42.0 41.3 1.0
Capacity Development 31.8 33.2 1.0 0.0 0.0 - 31.8 33.2 1.0
Supportive Program 204.8 221.3 0.9 150.9 370.1 0.4 355.7 591.3 0.6

Table 5.7 Detailed Operating Expendit ure
In millions of Afghanis T otal Operating Expenditures W ages G+S NFA Other Expenditures
1392 1393 % Change Budget % Budget 1392 1393 1392 1393 1392 1393 1392 (1) 1393
All Data Year to Date Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4 Qtr 4
Actual Prelim Actual Prelim Actual Prelim Actual Prelim Actual Prelim
T OT AL 197,746 227,891 15% 280,473 81% 139,475 150,157 38,213 48,250 8,353 9,431 11,704 20,053
T otal Security 122,336 140,077 15% 182,155 77% 92,987 99,024 21,760 32,977 6,689 7,521 900 556
Ministry of Interior 50,270 58,785 17% 66,250 89% 37,347 41,365 8,692 14,456 3,330 2,514 900 450
Ministry of Defence 58,083 65,927 14% 103,365 64% 45,205 45,631 9,571 15,442 3,307 4,829 0 25
General Directorate of National Security 9,597 11,071 15% 11,071 100% 7,857 9,256 1,715 1,800 25 15 0 0
Ministry of Foreign Affairs 3,249 3,215 -1% 363 886% 1,645 1,959 1,583 1,167 21 9 0 81
Other Ministries 1,137 1,078 -5% 1,106 97% 933 813 198 111 6 154 0 0
Total Governance, Rule of Law and Human Rights 12,423 13,324 7% 11,615 115% 7,989 9,953 3,151 2,617 976 357 307 397
Presidents Office 1,765 1,741 -1% 2,032 86% 1,222 1,311 490 394 54 35 -0 -0
Administrative Affairs 1,949 1,635 -16% 1,459 112% 742 630 612 463 288 165 307 377
Supreme Court 1,511 3,025 100% 3,004 101% 0 0 0 0 0 0 0 0
Ministry of Justice 582 542 -7% 620 87% 411 415 165 127 5 0 0 0
Other Ministries 6,617 6,381 -4% 4,500 142% 5,615 7,597 1,884 1,633 629 157 0 20
Total Infrastructure and Natural Resources 4,956 6,247 26% 8,600 73% 2,236 2,126 2,443 2,893 277 1,228 0 -0
Total Education 33,701 35,877 6% 36,359 99% 29,094 31,656 4,529 4,089 78 132 0 -0
Ministry of Education 29,195 31,170 7% 31,612 99% 26,489 28,591 2,653 2,453 53 125 0 -0
Ministry of Higher Education 3,153 3,898 24% 4,032 97% 1,824 2,518 1,316 1,374 12 6 0 -0
Other Ministries 1,353 809 -40% 715 113% 781 547 560 262 12 1 0 0
Total Health 3,115 3,833 23% 3,523 109% 1,941 1,884 1,103 1,849 71 100 0 0
Ministry of Public Health 3,115 3,833 23% 3,523 109% 1,941 1,884 1,103 1,849 71 100 0 0
Total Agriculture and Rural Development 2,303 1,800 -22% 1,649 109% 1,475 1,355 707 393 121 52 0 0
Ministry of Agriculture 1,488 1,126 -24% 1,145 98% 1,004 891 463 215 21 19 0 0
Other Ministries 816 674 -17% 504 134% 471 464 244 177 101 33 -0 -0
Total Social Protection 12,419 20,916 68% 17,441 120% 1,389 1,439 868 760 24 14 10,138 18,703
Ministry of Martyrs, Disabled and Social Affairs 11,470 19,943 74% 16,315 122% 852 886 476 462 4 3 10,138 18,592
Other Minisitries 949 973 3% 1,126 86% 537 553 392 298 20 11 0 111
Total Economic Gov. and Private Sector Devel't 6,351 4,326 -32% 4,449 97% 2,263 1,773 3,616 2,115 113 21 359 417
Ministry of Finance 5,449 3,224 -41% 3,248 99% 1,679 1,161 3,337 1,645 75 1 359 417
Other Minisitries 902 1,102 22% 1,201 92% 584 612 279 469 38 20 0 0
1/ Interest, and Subsidies and Transfers

Table 5.8 Detailed Development Expenditure
In millions of Afghanis 1392 1392 1392 1393 1393 1393 1393 1393
Approved Qtr 4 % Budget Budget Qtr 4
Budget U nspent
Actual Prelim % Budget % of T otal % Increase
Budget
YT D YT D U nspent Budget
T OT AL 157,750.1 80,099.2 51% 147,787.1 76,204.6 52% 71,582 100% -5%
Total Infrastructure and Natural Resources 46,893.4 27,807.0 59% 52,576.9 22,110.3 42% 30,467 43% -20%
Ministry of Public Works 23,050.8 13,984.3 61% 23,040.4 10,635.5 46% 12,405 17% -24%
Ministry of Transport and Aviation 179.6 1,196.5 666% 123.2 559.9 454% -437 -1% -53%
Ministry of Energy and Water 2,464.6 5,790.8 235% 10,439.3 4,069.5 39% 6,370 9% -30%
Water Supply and Canalization Corporation 11,996.9 0.0 0% 795.3 0.0 0% 795 1% -
Ministry of Communication 1,822.2 1,316.2 72% 2,338.4 468.7 20% 1,870 3% -64%
Ministry of Mines and Industries 2,087.0 1,257.3 60% 1,836.7 743.5 40% 1,093 2% -41%
Other Ministries 5,292.1 4,261.9 81% 14,003.6 5,633.3 40% 8,370 12% 32%
Total Agriculture and Rural Development 26,245.6 22,345.6 85% 31,078.7 27,745.7 89% 3,333 5% 24%
Ministry of Agriculture 6,607.5 5,016.2 76% 7,337.4 5,346.9 73% 1,991 3% 7%
Ministry of Rural Rehabilitation and Development 18,914.9 16,456.8 87% 22,734.9 20,979.8 92% 1,755 2% 27%
Other Ministries 723.2 872.6 121% 1,006.3 1,419.0 141% -413 -1% 63%
Total Education 19,435.5 7,556.4 39% 18,881.5 8,921.4 47% 9,960 14% 18%
Ministry of Education 14,535.3 5,734.9 39% 13,867.8 7,060.9 51% 6,807 10% 23%
Other Ministries 4,900.2 1,821.5 37% 5,013.7 1,860.4 37% 3,153 4% 2%
Total Economic Gov. and Private Sector Devel't 6,014.1 3,337.8 55% 6,236.0 2,942.3 47% 3,294 5% -12%
Ministry of Finance 4,444.6 2,427.7 55% 4,574.6 2,212.9 48% 2,362 3% -9%
Other Minisitries 1,569.5 910.1 58% 1,661.4 729.4 44% 932 1% -20%
Total Health 9,746.0 7,169.3 74% 14,661.7 9,065.2 62% 5,596 8% 26%
Ministry of Public Health 9,746.0 7,169.3 74% 14,661.7 9,065.2 62% 5,596 8% 26%
Total Governance, Rule of Law and Human Rights 3,927.4 2,054.3 52% 4,671.1 1,199.6 26% 3,472 5% -42%
Independent Directorate of Local Governance 1,230.3 509.4 41% 1,978.4 199.8 10% 1,779 2% -61%
Other Minisitries 2,697.0 1,544.8 57% 2,692.7 999.8 37% 1,693 2% -35%
Total Social Protection 1,109.9 751.9 68% 1,216.5 353.3 29% 863 1% -53%
Total Security 39,245.1 9,077.0 23% 9,427.1 3,866.9 41% 5,560 8% -57%
Total Unclassified 5,133.2 0.0 0% 9,037.6 0.0 0% 9,038 13% -

Table 5.9 ANDS Expenditure
In millions of Afghanis 1392 1393 1393
Annual Q4 Annual Budget Allocated % Alloc % Increase
Actual Prelim Prelim

T OT AL GR OSS EXPEN D IT U R ES 277,662.8 95,364.4 302,746.1 427,934.6 427,934.6 0.7 0.0
Operating Budget 197,604.9 71,869.0 226,811.4 280,340.2 280,340.2 0.8 0.2
Development Budget 80,057.9 23,495.4 75,934.7 147,594.4 147,594.4 0.5 -0.3
Security 131,412.9 48,622.5 143,944.2 185,311.5 194,334.3 0.7 0.1
Opera ti ng Budget 122,335.9 46,287.6 140,077.3 176,023.9 185,046.6 0.8 0.2
Devel opment Budget 9,077.0 2,334.9 3,866.9 9,287.6 9,287.6 0.4 -0.7
Governance 14,436.2 3,658.5 14,253.4 17,802.7 19,035.1 0.7 -0.2
Opera ti ng Budget 12,423.3 3,396.8 13,323.7 13,184.8 14,137.9 0.9 -0.1
Devel opment Budget 2,013.0 261.7 929.7 4,617.9 4,617.9 0.2 -0.6
Infrastructure 32,763.1 9,312.6 28,768.5 55,849.9 59,483.8 0.5 -0.4
Education 41,257.7 13,806.0 44,798.9 54,515.4 55,901.3 0.8 -0.1
H ealth 10,284.7 4,805.5 12,898.2 17,186.9 18,184.7 0.7 0.3
Devel opment Budget 7,169.3 3,382.4 9,065.2 14,661.7 14,661.7 0.6 0.3
Agriculture 24,649.0 7,893.7 29,545.8 33,039.7 33,166.2 0.9 0.0
Opera ti ng Budget 2,303.3 495.6 1,800.1 1,961.0 2,087.5 0.9 -0.3
Devel opment Budget 22,345.6 7,398.1 27,745.7 31,078.7 31,078.7 0.9 0.0
Social Protection 13,170.7 5,399.0 21,269.4 3,729.3 18,657.3 1.1 0.7
Devel opment Budget 751.9 117.2 353.3 1,216.5 1,216.5 0.3 -0.6
Economic Governance 9,688.5 1,866.5 7,267.8 9,050.2 10,685.0 0.7 -0.4
Opera ti ng Budget 6,350.7 1,092.2 4,325.5 2,814.2 4,449.0 1.0 -0.4
Devel opment Budget 3,337.8 774.3 2,942.3 6,236.0 6,236.0 0.5 -0.4
U nclassified 0.0 0.0 0.0 51,449.0 9,037.6 0.0 -
Opera ti ng Budget 0.0 0.0 0.0 42,411.3 0.0 - -
Devel opment Budget 0.0 0.0 0.0 9,037.6 9,037.6 0.0 -
Source: FPU using AFMIS data downloaded on the 17 August 2014

Table 5.10 COFOG Categorizations of Expenditure
In millions of Afghanis 1392 1392 1392 1393 1393 1393
Q4 Percent Q4 YT D Q4 Percent Q4 YT D Percent
Actual of T otal Actual Prelim. of T otal Prelim. Change
T OT AL N ET EXPEN D IT U R E 98,005 277,911 95,611 304,062 -2%
Sale of Land and Buildings 4 36 7 33 61%
T OT AL GR OSS EXPEN D IT U R E 104,037 100% 298,761 95,618 100% 304,095 -8%
RECURRENT EXPENDITURE 80,837 78% 246,028 78,543 82% 255,800 -3%
CAPITAL EXPENDITURE 23,200 22% 52,733 17,075 18% 48,295 -26%
0 0
General Public Services 13,004 12% 45,934 14,344 15% 40,398 10%
Recurrent Expenditure 11,760 11% 42,836 11,953 13% 33,486 2%
Capital Expenditure 1,244 1% 3,098 2,391 3% 6,912 92%
D efence 25,251 24% 67,215 26,906 28% 81,190 7%
Recurrent Expenditure 23,530 23% 63,043 22,206 23% 73,380 -6%
Capital Expenditure 1,721 2% 4,172 4,700 5% 7,811 173%
Public Order and Safety 19,948 19% 57,374 14,990 16% 49,762 -25%
Capital Expenditure 3,819 4% 6,129 759 1% 970 -80%
Economic Affairs 22,771 22% 60,243 15,122 16% 53,828 -34%
Capital Expenditure 14,454 14% 34,628 8,012 8% 29,468 -45%
Environmental Protection 51 0% 139 33 0% 150 -35%
Recurrent Expenditure 51 0% 137 29 0% 112 -43%
Capital Expenditure 0 0% 2 4 0% 38 -
H ousing and Communal Amenities 570 1% 1,291 498 1% 1,106 -13%
Recurrent Expenditure 116 0% 340 114 0% 401 -2%
Capital Expenditure 454 0% 950 384 0% 705 -15%
H ealth 4,119 4% 11,193 4,826 5% 12,972 17%
R ecreation, Culture and R eligion 817 1% 2,656 381 0% 1,540 -53%
Recurrent Expenditure 626 1% 2,003 383 0% 1,406 -39%
Capital Expenditure 191 0% 652 -3 0% 134 -101%
Education 14,802 14% 41,391 13,508 14% 43,538 -9%
Capital Expenditure 1,046 1% 2,528 725 1% 1,978 -31%
Social Protection 2,704 3% 11,326 5,010 5% 19,611 85%

Table 5.11 Summary of Transactions
In millions of Afghanis 1392 1393

Q4 Q4
T R AN SACT ION S IN FIN AN CIAL ASSET S AN D LIABILIT IES 6,141 -7,332 -219%
N ET ACQU ISIT ION OF FIN AN CIAL ASSET S 2,435 -9,462 -489%

D omestic 2,435 -9,462 -489%
Currency and Deposits -5,187 -10,222 97%
Treasury Single Account -2,670 -12,524 369%
Donor Accounts -2,516 2,301 -191%
Other Deposit Accounts (1) -2 1 -130%
Loans -501 -799 59%
Other Accounts Receivable -22 2,207 -9937%
Other Assets 8,147 -648 -108%
Foreign 0 0 -
N ET ACQU ISIT ION OF FIN AN CIAL LIABILIT IES 3,705 2,130 -43%
D omestic 70 2,215 3048%
Accounts Payable -1,046 -998 -5%
Pension Liabilities 0 133 -95373%
Other Payables 0 0 -100%
Other Liabilities (1) 1,116 3,080 176%
Foreign 3,635 -85 -102%
Foreign Currency 3,178 11 -100%
Loans 458 -96 -121%

Glossary
An itemised summary of estimated intended expenditures for a given period along with proposals for
Budget
financing them.
The budget for operating budget expenditures. These are mainly recurrent expenditures (and some
Operating Budget
capital), and include wages and salaries for all public servants, running costs for Ministries, etc.
The Government budget for development projects implemented by Government agencies. It contains
Development Budget
recurrent and capital expenditure in Afghanistan. These projects are mainly donor funded.
Core Budget The operating budget plus the development budget
The budget for all donor activities that are funded directly by donors, rather than channelling the
External Budget
funding through the Government
Integrated Budget The core budget plus the external budget
Expenditure/Expense The purchase of goods, services, assets. It also includes interest payments, and subsidies and transfers.
Expenditure that is ongoing rather than one off, and does not result in the acquisition of a fixed asset.
Recurrent spending
For example payments for electricity or fuel, the payment for salaries etc.
Capital spending Spending on a capital asset, for example a tractor or irrigation pump.
Compensation of The total remuneration, in cash or kind, payable to an employee (not including contractors etc.) for
Employees work done during the accounting period. It consists of wages, salaries, and social contributions.
Goods and Services Expenditure items such as electricity costs, maintenance and repair, consultancy services and items
(use of) with a purchase value below Afs 50,000
Subsidies Payments made to State Owned Enterprises to help them cover their costs
Payments to a person or organisation for which no service is received, for which pension payments and
Transfers
subsidies.
Interest payments The interest paid on outstanding loans
Throughout the year, funding from contingency reserve items may be allocated to the budgets of
Contingency Funds
budgetary units during the year (increasing their original budget).
An entity over which ownership rights are enforced, and from which economic benefits may be derived
Assets
by its owners by holding it or using it over a period of time.
Non-financial assets Physical assets such as real estate and machinery
A financial claim on an asset that is usually documented by some type of legal representative. Examples
Financial assets
include bonds, but not tangible assets such as gold. These are below the line as financing items.
Revenues Domestically raised revenues and donor grants (excludes loans).
Revenues raised by the Government (excludes donor grants). Typically revenues raised by the Revenue
Domestic Revenues
Department (taxes, customs duties etc.), and revenues raised by other Government agencies (fees etc.)
Funds received from donors. Often the money can only be spent on a certain project or activities, but
Grants
sometimes can be spent at the discretion of the recipient Government

Balances The difference between revenues and expenditures
Operating Balance Domestic revenues (excluding donor grants to the operating budget) minus operating budget
(excluding grants) expenditures
Operating Balance
Domestic revenues plus donor grants to the operating budget, minus operating budget expenditures
(including grants)
Development Budget
Donor Grants to development budget minus development budget expenditures
Balance
Balance (excluding
Total revenues (excluding and including grants) minus total expenditures
and including grants)
Revenues (including donor grants) minus recurrent expenditures. It measures the change in net worth
Net operating balance
resulting from transactions (excluding capital expenditure)
Primary operating
Net operating balance plus interest expenditures
balance
Surplus A positive balance (revenues are greater than expenditures)
Deficit A negative balance (revenues are less than expenditures)
How the government funds its deficit (or invests its surplus). For example drawing down on foreign
Financing
loans or withdrawing funds from the Central Bank. It describes transactions in financial assets.
Refers to real expenditure and revenue activities, for example the paying of salaries, the purchase of
Above the line
school books, the building of a dam etc.
Refers to financing transactions, and transactions in financial assets, for example loan disbursements
Below the line
and repayments, transactions on the Treasury Single Account
Loans of money from foreign Governments, international organisation and development banks.
Loans
Afghanistans debt strategy allows only concessional loans to be taken out.
Concessional loans Loans that are offered at below market rates (e.g. a low interest rate and with a long grace period).
Principal repayment Repayment of the principal of a loan (as distinct from an interest payment)
Gross Domestic The value or all the goods and services produced by a country in one year. This excludes the opium
Product economy for Afghanistan
The level of revenue or expenditure expected over a quarter or during the year. For expenditures we
Budget target
assume that the budget target for the quarter is 25% of the annual budget
Budget variance The difference between the actual outcome and the budget target
Treasury Single The main bank account of the Government. In Afghanistan, the TSA consists of the Afghani account,
Account (TSA) the US dollar account, provincial revenue and expenditure accounts, and ARTF and LOTFA accounts.
Afghanistan Financial Management Information System. The central database that records every
AFMIS
transaction made by Government
Eurotrace The computer database system for recording and classifying customs transactions.

Revisions and Notes
1. TSA values were revised from historic figures.

2. The GFS mapping maintains the Fixed Taxes revenue line.
3. The Other Taxes under the GFS mapping includes miscellaneous revenue (this typically would be small, as
miscellaneous revenue is typically distributed among appropriate revenue lines over time).
4. Retained earnings, and equity are included under Transactions in Financial Assets in the Sources and Uses of Funds
Summary table.
5. Debt data is presented, along with financing data and the revenue and expenditure data in order to illustrate
consistency among the different sources of data.
6. The institutions covered in this report include Central Government and Provincial Government.
7. Capital Expenditure on Machinery and Equipment is any spending above the value of Afs 50,000; otherwise it is
recorded under Goods and Services.
8. The label Budget in the tables refers to the Original Budget figures, as published in the Budget Statement. The label
Allocated is the amount of funds allocated from the Budget, and the Actual is the Cash value of transactions during
the quarter.
9. TSA balances and transactions are recorded on the AFMIS system, these values should reflect the balance of available
funds in the account at the end of the quarter, and this report uses reconciled ledger data.
10. Net Expenditures are Total Expenditures minus the income earned from the Sale of Assets.
11. Table 5.5: 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.

Fourth Quarter Fiscal Bulletin
Fiscal Year 1393
Editor-in-Chief Muhammad Mustafa Mastoor
Deputy Minister for Finance, Ministry of Finance
Coordinating Department Fiscal Policy Directorate, Ministry of Finance
Contact Person Hafizullah Momandi, Fiscal Policy Directorate
hafizlm@yahoo.com
Co-Authors
Hafizullah Momandi Acting Director
Abdul Basir Abbasi Fiscal Policy Analyst
Habiburahman Sahibzada Tax Policy Analyst
Abdul Rahman Rahimi Revenue Policy Analyst
Shams-Ul-Haq Noor Fiscal Policy Analyst

1393-Quarterly Fiscal Bulletin 4

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1393-Quarterly Fiscal Bulletin 4

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Islamic Republic of Afghanistan

Fiscal Policy Directorate

Mohammad Mustafa Mastoor

Q4 Actual Q4 YTD Actual

Securi ty 26416 15880 3991 Securi ty 99024 32977 7521

Quarterly Fiscal Bulletin Page |1 Q4-1393

Revenue 328383 91864 397670 102943

Expenditure 262104 76096 0 78543

Net Operating Balance 66279 15768 397670 24400

Net Acquistion of Non-Financial Assets 88118 21909 0 17068

Net Lending/Borrowing -21839 -6140 397670 7332

Transactions in Financial Assets 21839 6141 -397670 -7332

Quarterly Fiscal Bulletin Page |2 Q4-1393

Quarterly Fiscal Bulletin Page |3 Q4-1393

Table 1.1 Overview of Macro-Economy

1392 1393 1393

A moderation in the rate of decline of the exchange rate;

Quarterly Fiscal Bulletin Page |4 Q4-1393

Table 1.2 Consumer Price Index

1392 1393 1393 1393 1393

CPI Rate -1.0 1.1 -0.1 1.3 3.1

Quarterly Fiscal Bulletin Page |5 Q4-1393

Risk Likelihood Impact

Fiscal: Aid slowdown (commitments dont materialize) MEDIUM HIGH

Macroeconomic: depreciation of the Afghani causes increases in food prices,

Quarterly Fiscal Bulletin Page |6 Q4-1393

Table 2.1 Performance in Key R evenue Lines

Quarterly Fiscal Bulletin Page |7 Q4-1393

Revenue Performance: Outturn vs Target

45000 Total Customs Sales

Source: FPD, Mi nistry of Fi nance

Quarterly Fiscal Bulletin Page |8 Q4-1393

Revenues Including Grants 91864 306105 - - 102943 278975 - 12%

Grants 58273 196373 - - 74211 179697 - 27%

Quarterly Fiscal Bulletin Page |9 Q4-1393

Table 2.3 Revenue Collection by Key Provinces

Ka bul 552 2193 2876 863 648 2443 75% 17%

Quarterly Fiscal Bulletin P a g e | 10 Q4-1393

Quarterly Fiscal Bulletin P a g e | 11 Q4-1393

Table 2.4 Collection by Agency

In millions of Afghanis 1392 1392 1393 1393 % Cha nge

Other Ministries 5060 18061 4735 11017 -6%

1/ Ma rtyrs , Di s a bl ed a nd Soci a l Affa i rs

Revenue Performance in Grants

Quarterly Fiscal Bulletin P a g e | 12 Q4-1393

1392 1392 1393 1393 1393 1393 1393 1393

TOTAL NET EXPENDITURES 98005 277911 0 0 95611 304062 -2%

Quarterly Fiscal Bulletin P a g e | 13 Q4-1393

Contingent funds are used in social security, 160000

120000 Current Year

martyrs, disables, and pension to retirees. Its 80000

to a 3 percent of the total national budget in 20000

budgeted at 7.8 percent of the total budget for

Quarterly Fiscal Bulletin P a g e | 14 Q4-1393

1392 1393 1393 1393 1393

Domestic Revenue/Total 37% 42% 34% 46% 28%

Key Expenditure vs Target

Quarterly Fiscal Bulletin P a g e | 15 Q4-1393

Table 5.5 in the Appendix sets out expenditure by Ministry in detail.

Table 3.3 Key Poverty Targeting Expenditures

Quarterly Fiscal Bulletin P a g e | 16 Q4-1393

Table 4.1 Debt Stock

EXTERNAL 138,066 134,558 135,434 -2% 0.7%

DOMESTIC 30,415 30,996 30,996 2% 0.0%