The Ministry of Finance says government continues its efforts to reduce its dependence on covering the national budget with foreign aid.
MPs Call For More Focus On Domestic Revenue Generation
After government disclosed details on next year’s budget, some lawmakers in the Wolesi Jirga, Lower House of Parliament, said the administration should pay more attention to national revenue generation so as to reduce dependency on foreign aid.
The Ministry of Finance (MoF) 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 deputy head of revenues and customs at the Ministry of Finance, Abdullah Raqibi, 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 resources.
“Afghanistan still shows its reliance (on foreign aid). Once again, the next fiscal year’s budget will rely on foreign aid and we are sorry about that. Once again we want to call on government especially the Finance Ministry to save Afghanistan from this state of dependence and focus on generating national revenue,” said Sayed Ali Kazemi, an MP.
The MoF spokesman Shamroz Khan Masjidi said the share of foreign aid in the national budget has continued to decline over the past few years and that the ministry wants to increase national revenue generation.
“The funding of the national budget from local revenue increases every year – compared to the previous year. But in general, we still need part of our national budget to be funded by our international friends and the 1398 year is not an exception as part of our budget will be paid by our international friends,” said Masjidi.
Figures obtained by TOLOnews for the past five years show that the national budget’s fund from foreign aid decreased from 71, 69, 66, 54 and 51 percent respectively over this time.