Budget and Budgeting Process

Abstract

The budget is the government’s plan for revenues and expenditure; it enables the government to deliver services to the people and implement its development plans. The Afghan budget is composed of two parts: an operating budget and a development budget. The operating budget is the part of the budget which covers operating costs or the ongoing costs of the government, such as salaries of government employees, pensions, and the maintenance costs of infrastructure and other goods and services essential for running the day-to-day activities of the government. A development budget is part of the budget that finances development projects or infrastructure programs such as the construction of roads, schools and hospitals. For better management of budgeting and planning, line ministries and budgetary units are organized in the following eight key sectors based on the national development strategy of Afghanistan:

• 1. Education

• 2. Health

• 3. Security

• 4. Governance, rule of law, and human rights

• 5. Infrastructure and natural resources

• 6. Agriculture and rural development

• 7. Social protection

• 8. Economic governance and private sector development.