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394Cbe5b830a289daf21a692c9 S.No Table of Content Pages 1 Introduction 1 2 Macroeconomice Outlook 2 2 Fiscal Plicy 3 2.1 Fiscal Framework 3 2.2 Medium Term Budget outlook 3 2.3 Revenue and Tax Ploicy 4 3 External Resources 5 3.1 Grants and Loan 5 3.2 Operating Budget Grants 5 3.3 Devlopment Budget Grants nd Loans 6 4 National Budget for FY 1395 6 4.1 Operating Budget for FY 1395 8 4.2 Devlopment Budget for FY 1395 10 5 Budget for FY 1395 and achievements of 1394 broen down by sectors 13 5.1 Security Sector 13 5.1.1 Budget Summary in FY 1395 13 5.1.2 Achievements of 1394 14 5.2 Good Governance and Rule of Law Dector 14 5.2.1 Budget Summary for 1395 14 5.2.2 Achievements of 1394 15 5.3 Infrastructure and Natural Resources Sector 16 5.3.1 Budget Summary for 1395 16 5.3.2 Achievements of 1394 17 5.4 Education Sector 19 5.4.1 Budget Summary for 1394 19 5.4.2 Achievements in FY 1394 20 5.5 Health Sector 21 5.5.1 Budget Summary for FY 1395 21 5.5.2 Achiecements in FY1394 21 5.6 Agriculture and Rural Development Sector 22 5.6.1 Budget Summary for FY 1395 22 5.6.2 Achievements in FY 1394 22 5.7 Social Protection Sector 24 5.7.1 Budget Summary for FY 1395 24 5.7.2 Achievements in FY 1394 24 5.8 Economic Governance Sector 26 5.8.1 Budget Summary for FY 1395 26 5.8.2 Achievements of 1394 26 6 Budget Reforms 29 6.1 Program Budgeting 29 6.2 Provincial Budgeting 30 6.3 Opertion and Maintenance 31 6.4 Budget Performance Monitoring and Reporting 32 6.5 Public - Private Partnership 33 6.5.1 Central Public - Private Partnership Unit 34 7 Outcomes and Outputs Indicators for Ministries and Budgetary Unit for FY 1395 36 8 Budget Execution Guideline 62 9 Quarterly Debt Management Report 68 Table 1 Medium Term Fiscal Framework 69 Table 2 National Budget Comarison 1394 and 1395 70 Table 3 1395 Core Budget 74 Table 4 1395 National Budget and Financing Summary 77 Table 5 1395 Budget and Financing 78 Table 6 1395 Detailed Budget Financing 79 Table 7 1395 Operating Budget 81 Table 8 1395 Development Budget (Discretionary and Non-Discretionary) 86 Table 9 List of 1395 Development Projects (CF + New) 89 Security Sector 89 General Directorate of National Security 89 Presidential Protective Service 89 Ministry of Foreign Affairs 89 Ministry of Interior Affairs 90 Governance, Rule of Law and Human Rights 91 The High Office of Oversight and Anti Corruption 91 Independent Directorate of Local Governance 91 Office of the Executive (Cabinet Secretariat) 95 Office of Administrative Affairs 95 Supreme Court 97 National Assembly - Mesharano Jirga 97 National Assembly - Wolosi Jirga 98 Attorney General 98 Ministry of Haj and Religious Affairs 98 Ministry of State and Parliamentary Affairs 99 Ministry of Justice 99 Independent Administrative Reforms and Civil Service Commission 100 Afghanistan Human Rights Commission 100 Infrastructure and Natural Resources 100 Directorate of Environment 100 Civil Aviation 100 Independent New board of Kabul 102 Da Afghanistan Brishna Shirkat 103 Office of Geodesy and Cartography 105 Kabul Municipality 105 Canalization and Water Supply 106 Ministry of Urban Development 107 Ministry of Energy and Water 108 Ministry of Transport 114 Ministry of Public works 115 Ministry of Communication 124 Ministry of Mines 124 Education Sector 126 Afghsnistan academy of Science 126 National Olympic Committee 126 General Directorate of Radio Television Afghanistan 127 Ministry of Information and Culture 128 Ministry of Higher Education 129 Ministry of Education 134 Health Sector 145 Ministry of Public Health 145 Agriculture and Rural Development 153 Afghanistan Independent Land Authority 153 Ministry of Rural Rehabiliation and Development 153 Ministry of Agriculture, Irrigation and Livestock 156 Ministry of Counter Narcotics 161 Social Protection 162 Afghanistan National Disaster Management Authority 162 Directorate of Kuchies 162 Ministry of Women Affairs 162 Ministry of Border and Tribal Affairs 162 Ministry of Refugee and Repatriation 163 Ministry of Labor and Social Affairs, Martyrs and Disabled 163 Economic Governance and Private Sector Development 164 Central Statistics Office 164 Micro Finance Investment support facility for afghanistan 165 Afghanistan national standard authority 165 Control and Audit Office 165 National Economic Council 166 Ministry of Economy 166 Ministry of Commerce and Industry 166 Ministry of Finance 167 Contingency and other Codes 170 Introduction The National Unity Government is committed to use the “Realizing Self-Reliance” paper and the commitments for reforms and renewing the partnerships as its action plan for the transformation decade. The international community has declared in London Conference (Dec 2014) and SOM Meeting in Kabul (Sunbola 1394) that they will provide financial support in this regard. Implementation of programs included in this document will result in: improved security, reforms in governance systems, creation of fundamental structures, boosting economic growth and poverty reduction in the medium to long runs. The main characteristics of the Self-Reliance Paper which includes (improved security, political stability, fighting corruption, good governance, rule of law and human rights, fiscal sustainability, transparency public financial management and commercial banking, development planning reforms, managing and ensuring development rights of the citizens, private sector development, comprehensive growth, development assistances and aid effectiveness) give hope for a promising future in economic growth and poverty reduction in the medium and long term. Prioritization of NPPs and provision of financial funds for implementation of those programs are among the prime agendas of the government. According to the Self- Reliance pager, investment in agriculture sector, extractive industry and delivery of services through private sector development are among the major priorities of the government in the transformation decade. The international community once again declared their commitments in London and Kabul Conferences to provide financial support for NPPs and it was emphasized that 80% of the financial assistance needs to be channeled through the national budget. In addition to this, the government strives to accelerate the investment process in infrastructure, agriculture and services sectors through domestic resources, public-private partnership investment mechanisms and encouraging the private sector. Implementation of public-private partnership investment mechanism is underway for development and efficiency of investment. Preliminary actions have been taken for development of public-private partnership investment regulations and assessment of this mechanism’s implementation in a number of pilot agencies. Implementation of this mechanism is expected to accelerate the implementation process of medium and large national programs and projects effectively and put them into exploitation as soon as possible. This way, the investment rate will increase and would result in delivery of quality services and stimulate economic growth factors in the medium and long term. During the past two years the effects of economic downfall on fiscal sustainability have been significant and cash deficiency in government treasury resulted in creation of a number of restraints in execution and funding of government expenditure. Therefore, achieving fiscal sustainability is one of the goals within NPPs. According to “Realizing Self-Reliance” paper, the identified indicators for increasing domestic revenue include: preparation of customs reform envelop and its implementation, implementation of the ASYCUDA module all over the country and installation of electronic payment in all customs offices. Likewise, improvement of 1 banking supervision and implementation of the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act) are other important indicators for improvement of financial and banking systems of the country. The procurement process mechanism has been effectively handed over to the National Procurement Commision operating under Office of the President and Office of the Chief Executive. It is now expected that there will be more acceleration and transparency in procurement process that will significantly improve budget execution rate by removing major obstacles in implementation of the projects. Afghanistan economic growth has declined from an average 9.6% in 1389-1393 to 3.7% and 1.3% in 1393 and 1394 respectively. With improvements in security situation and government measures for implementation of the Self-Reliance paper and other new policies, the economic growth is expected to recover to 2.6% in 1394 and 4.4% in 1395. 1. Macroeconomic Outlook With continued government-wide activities, 1394 and 1395 are expected to be years of resurgence, however, economic performance is expected to remain below that of recent history. Growth in Afghanistan is expected to be led through a recovery in the services sector in 1394 and 1395, with growth levels returning to a moderated trend. Price changes have moderated over time. However it is expected to rise slightly above the 1393 figure this year and in 1395. Medium Term Macro Framework: In percentage change Historic Current Budget Outer Years Unless otherwise noted 1393 1394 1395 1396 1397 Real GDP Growth - Market Price 2.1% 2.6% 3.4% 4.3% 4.5% Nominal GDP Level (Afs bn) 1193.2 1219.3 1350.2 1533.4 1717.3 NGDP by Sector (Afs bn) Primary 294.0 280.5 922.1 3043.5 089.2 Secondary 252.9 250.3 288.6 303.0 389.3 Tertiary 620.3 655.8 730.4 809.0 901.2 GDP Deflator -1.1% -0.4% 7.1% 8.2% 7.9% CPI Inflation 1.3% -3.2% 0.2% 6.1% 5.8% Exchange Rate (Afs/USD) 57.3 61.3 68.0 Source: Fiscal Policy Directorate Staff Estimates CPI and GDP Deflator GDP is being led by growth in services; 10.0% however agriculture remainsas a large 8.0% component of household incomes and occupational activity.
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