Objective
The project 'Making Budgets & Aid Work(MBAW/UNDP)' continued to build on the achievements and plans of the previous years, providing support to the Budget Department of the Ministry of Finance. Many positive steps were taken in FY 2007-08 with respect to the project implementation and ongoing operations. Such efforts have been rewarded and widely acknowledged by the Government of Afghanistan, donors, civil society and the international community in large.
The MBAW UNDP project is a major contribution to strengthening the National Budget process, a central mechanism for Government decision making on allocation of domestic and external resources on the basis of priorities and programs identified in the ANDS. This is one the most in need of guidance areas of Public Finance Management.
The project contributed to improve government capacity for formulating and executing a credible and comprehensive national budget that is policy based, focused on results and establishes linkages to broader goals of development and poverty reduction (ANDS & MDGs). The project also directly supports Ministry of Finance to improve coordination, quality and coverage of information and effectiveness of international aid to Afghanistan
OBJECTIVES OF EACH UNIT WITHIN THE BUDGET DEPARTMENT
According to the MoF Strategic Plan, the objectives directly related to the Budget Department are to:
- Establish and implement an effective budget process
- Effective and predictable formulation and implementation of the Budget.
- Ensure fiscal implications are considered in policy development and review fiscal implications of Cabinet Decisions
- Secure increased commitments and disbursements from donors and increase funding channeled through the Core Budget.
- Ensure each unit prepares a single core budget (with operating and development budgets integrated) and that this budget has clear links with the Government's National Development Strategy.
- Develop and implement an open and transparent public information strategy on the National Budget.
- Effective and transparent management of allotments and appropriations with adherence to strict fiduciary standards.
- Ensure delivery of Budget Department's products and services to key stakeholders and clients.
- Develop capacity of line ministries by providing both formal and informal assistance at key times during the budget process
- Ensure Budget Department staff attend relevant training and conduct themselves with professionalism and integrity
To achieve these objectives, the structure proposed includes 62 technical (including managerial) staff and 6 support staff. Short description about each sector is outline below:
The Budget Formulation and Monitoring Unit
will be consistent with the 8 sectors specified by the Afghanistan National Development Strategy (ANDS). Their primary responsibilities will be facilitating and monitoring budget planning and preparation in the line ministries within their respective pillars. In addition, the pillars will provide policy analysis and advice. [Total 39 staff plus 2 TA]
The Budget Coordination and Execution Unit
will consist of three teams with a total number of staff of 20 with 3 TA.
- The Budget Policy, Coordination and Reporting team will be responsible for coordinating information from the eight sectors and providing reports to MoF, Government and Parliament. The Unit will also be responsible for developing a timetable for the budget preparation process and providing policy advice on budget policy issues (e.g. provincial and SOE issues). This Unit will have a major role in the coordination and preparation of the budget documentation including budget circulars, Mid Year Review; Quarterly Fiscal Bulletin and the National Budget. [Total 5 staff plus 1 TA]
- The Budget Execution team will be responsible for monitoring expenditure and liaising with Treasury on allotment issues. The Unit will also be responsible for providing expenditure monitoring reports from AFMIS to the Sector Managers each month to enable expenditures to be monitored within their sectors. [Total 5 staff plus 1 TA]
- The Grant/Loan Management and Aid Coordination team will manage the grants and loan agreements between donors and the Government of Afghanistan. This will include participating in negotiations, managing the grants and loans process and providing briefings and advice to the Minister and Deputy Minister. It will also: track aid flows into Afghanistan at the macro and project level within and outside the National Budget; manage the development and enhancement of the existing DAD system and provide input to Treasury on enhancements to the Chart of Accounts and the Afghanistan Financial Management Information System (AFMIS); facilitate information sharing and understanding of donors about Government priorities and progress; input into strategies to increase donor funding to the core budget; provide support to the Consultative Groups and cross-cutting Advisory Groups for ANDS; and act as a secretariat to the Consultative Group Steering Committee. [Total 10 staff plus 1 TA]
The Office Management and IT Unit
will provide administrative support to the Budget Department including training plan development and office and logistics management. The Unit will also coordinate and implement a public information strategy on the National Budget and develop mechanisms to measure and monitor the effectiveness of the delivery of Budget Department's products and services to key stakeholders and clients. [5 staff excluding Assistant to the DG]