 Afghanistan on Tuesday unveiled its annual budget for the year 2005-2006, with almost 50 percent of the total outlay allocated for security-related affairs. Ministries of Interior and Defence, entrusted with securing the war-torn country internally as well as externally, have been given 44 percent of the $678 annual budget, up by 15 percent over last year. Announcing the new budget, the Finance Ministry said 50% of the budgetary expenditure could be met from internal revenue generation. "The country is still dependent on external funding to meet its budgetary needs," he admitted. Anwar-ul-Ahadi told a press conference domestic revenues were less than the government had anticipated. But he expressed the hope the revenues would increase and next year the government would be able to meet a larger part of its expenditure. | The world hopes with you, Anwar. |
Despite the 15% increase, Ahadi said there was no plan to increase salaries of government employees in the next fiscal year, because domestic earnings were still inadequate. Ahahdi explained thanks to decades of strife, revenue collection by local commanders | Read: Warlords get their cut first... |
had become a deep-seated practice, which stayed on, making it difficult for the government to collect its due share. The only way to increase salaries of government employees was to hike taxes and collect customs revenues and land taxes. The annual rate of growth expected for the year 2005-2006 is 10.1%, the minister announced.| I'm not an economist, but I think that's better than the EU for FY 2006... |
| ... I think the Afghan defense budget is higher than the EU's, too ... |
The Interior Ministry, which is in charge of combating drugs, terrorism, war crimes and policing, has been given the highest allocation (6.9 billion Afs or a quarter the total budget) among 27 ministries. The second highest allocation has gone to the Ministry of Defence, which is in charge of security across the country as well as defending the borders. It has received 6.1 billions Afs, approximately a fifth of the total budget. Afghanistan is one of the countries with lowest rates of literacy and is in dire need of education. But the Ministry of Education has been given 5.7 billions Afs. The Ministry of Energy, now under the powerful former governor of Herat, Ismail Khan, has been allocated 174 million Afs - less than 1% percent of the budget and down by 300% from the last year.| I wonder how Khan is liking his desk job now... |
The Ministry of Women's Affairs has been given 67 million Afs, an increase of 26.7% over last year. The communication ministry has been allocated 332 millions Afs. According to the Finance Ministry, 16.15 billion Afs ($333 million) will be obtained from domestic revenues, 13.58 billion Afs ($280 million) from the Reconstruction Trust Fund of Afghanistan and 3.15 billion Afs ($65 million) from the Law and Order Fund. |