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Category: Directorate General Budget

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MAKING BUDGETS AND AID WORK PROGRAMME

Proposed Project Goal: The goal of the project is to promote efficient and effective operations of the Ministry of Finance of the Government of Afghanistan (GoA) in fulfilling its mandate.

Proposed Project Objective: The objective of the project is to strengthen the capacity of the Ministry of Finance in the use of “Budget” as the central instrument of GoA for effective delivery on national needs and priorities’  

Expected Outcome Results:

Contextual analysis: The Ministry of Finance and its mandate

The Ministry of Finance (MoF) bears responsibility for the management and execution of the national budget, using a whole of government approach to policy AND strategy implementation; coordination; monitoring and reporting of the ANDS; collection of taxes; and organization and control of public expenditures and payments to the Government, including customs revenues. The Ministry’s broad functions are as follows:

■   Support governance and rule of law; security and development by providing analysis and advice on a range of issues relevant to ANDS with particular emphasis on economic growth and development

■   Coordinate effective and efficient implementation of the national strategy; undertake prioritization exercises of sectoral strategies for incorporation into national programmes

■   Development of a monitoring system and its implementation for measuring results and enforcing corrective actions in the short, medium and long term

■   Mobilize revenue and manage Government finances, especially budget revenue and expenditure operations, the management and control of Government bank accounts and cash flows;

■   Support economic management and promote economic growth through the provision of policy analysis and advice on a range of economic policies and strategies, especially from the fiscal standpoint, and with particular emphasis on supporting inclusive economic growth and development;

■   Manage public wealth through managing and advising the Government as a whole on issues involving the assets and liabilities of the Government, including a clear focus on policies and measures for achieving sustained improvements in public sector assets and liabilities;

■   Promote good governance by acting as chief custodian of Afghanistan’s public financial management system, combating corruption, ensuring and enhancing financial system integrity, and providing the lading policy and technical inputs for public financial laws, regulations, procedures, accountability structures, fiscal transparency, and quality assurance practices of public institutions; and

■   Serve as a best practice leader within Afghanistan’s public sector in matters of efficiency, transparency, and integrity of financial management, as well as in quality of policy analysis and professionalism in its advisory role to Government

MoF planned and adopted a public financial reform management agenda. The implementation of the PFM reform resulted in successful attainment of a range of policy action benchmarks under International Monetary Fund-supported programs. At the July 2010 Kabul Conference the MoF committed itself to further reforms through adoption of a change policy to strengthen ANDS delivery and a three-year Public Financial Management Roadmap, with focus on:

■   Design, plan and cost the 22 national priority programmes in consultation with the international community and broad based consultation at the national level

■   Develop a system to build the capacity for delivering on the London/Kabul conferences benchmarks; and providing 100 day progress reports

■   Strengthen JCMB for making donor-government decision making more efficient and effective

■   Strengthening the budget in driving effective delivery of key priority outcomes, including improved aid management, improved Medium-Term Fiscal Strategy, and simplified programme budgeting;

■   Improved budget execution (including provincial budgeting directed to improved service delivery), procurement reform, and enhanced performance monitoring;

■   Increasing accountability and transparency, including more timely and accurate information, more budget-related engagement with Afghan civil society and the country’s development partners, and strengthened internal and external audit; and

■   Increased capacity of line ministries to implement national programs effectively and efficiently.

The list above, not only in terms of the numbers of functions but the vicarious services MoF is required to deliver, makes it evident that efficient and effective performance from MoF demands high capacity in its personnel at all levels.

More detail Download Complete Document About MBAW/UNDP Ministry of finance

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