English | دری

Hole in Afghan budget to have negative impact on development projects

in Afghan Business

Hole in Afghan budget to have negative impact on development projects

finance ministryAfghan Ministry of Finance has expressed concerns at the USD 375mn hole in the government budget for this year.

The shortfall is likely to threaten public projects and civil servants’ salaries, putting the war-torn country in a deep stress as it awaits a new leader and foreign troops are preparing to withdraw.

Ministry of Finance officials have linked the hole in the budget to propaganda about the country’s elections and security situation and fall in investments, exports and agricultural produces.

“The hole in the budget is going to prevent us from implementing the development projects that we had planned for this year,” said Abdul Qadir, spokesperson to the Ministry.

This year’s budget stands at 428 billion Afghanis, of which 147bn is earmarked for development budget and 280bn for ordinary budget.

Meanwhile, some economic pundits have suggested obtaining loans from the central bank as a temporary solution to the problem.

Ministry of Finance officials have expressed optimism about the outcome of the elections and are hopeful that the country’s investment and exports would pick up pace after the new president is elected.

About 65% of the country’s budget is dependent on aid. Economic experts believe that the budget hole would expand further if the government did not tackle corruption and ensure transparency in the management of foreign aid.



Related Articles

Afghanistan to grow at a rate of 6.5% in 2013

According to the Asian Development Bank’s latest report, Afghanistan is predicted to grow at a rate of 6.5%. The Asian

Multimedia project offers peek into working lives of Kabulis

A young boy who sat on the roof of his home to watch rockets fly overhead now passes his time

Community contributes to the implementation of development projects in Sar-e-Pul

Eight projects of the National Solidarity Program of the Ministry of Rural Rehabilitation and Development (MRRD/NSP) were recently completed in

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.