Ministry of Finance says government has succeeded to increase domestic revenue by 14 percent this year.
Budgetary Units Spend 75 Percent Of Their Funds
The Ministry of Finance (MoF) on Sunday said that so far this year, government’s budgetary units have spent almost 75 percent of their development budgets.
The MoF spokesman Shamroz Khan Masjidi said that by the end of the year, development budget spending will reach at least 80 percent.
He said that this year, government has managed to collect over 174 billion AFs from domestic revenues which also surpasses the previous year’s target.
Masjidi said that along with an increase in budget spending this year, government has been able to increase revenue collections from domestic resources by 14 percent compared to a year before.
“This year IMF (International Monetary Fund) had given set 173.50 billion Afghanis as a target for us. So far, we have collected 173.95 billion Afghanis,” said MoF spokesman Shamroz Khan masjidi.
Officials from Chamber of Mines and Industries expressed optimism over an increase in revenue collections but said that the private sector has been under massive tax increase this year.
They said that government should create facilities in this sector.
“I have worked for one year and almost $100,000 is my investment but I have suffered between $30,000 to $40,000 losses and you (government) will, for sure, collect taxes from me for this investment of $100,000 – four percent, while I have suffered $30,000 losses,” said Abdul Rahman Faizan, deputy head of Chamber of Mines and Industries, as he talked about businessmen who shared their problems with the authority.
The Ministry of Finance has allocated AFs 399 billion for the 1398 fiscal year’s budget, 69 percent of which has been allocated for the standard budget while the remaining 39 percent has been allocated for the development budget.
According to the ministry, from the AFs 399 billion, AFs 275 billion will be allocated to the standard budget and the remaining will be put aside for the development budget.
The MoF figures show that 51 percent of the budget will be funded by foreign aid while 49 percent of it will be funded by national revenue.