1390-Quarterly Fiscal Bulletin 3

Foreword and Acknowledgement
Fiscal Bulletins provides information on key fiscal aggregate to the citizens of the country. It helps people
understand and know the governments performance with respect to its fiscal operations. It also trends in
actual core budget expenditures and domestic revenue collection which are essential to the public so they
can know and hold the government responsible for the management of the tax payers moeny during the
particular quarter.
I am pleased to share the 17th edition of the Quarterly Fiscal Bulletin for the third quarter of 1390. This
edition of the bulletin provides a snapshot of the actual domestic revenues collection and core budget
execution during the quarter. An attempt has been made to provide analytical analysis of the governments
fiscal position over the quarter.
The section 5 of the bulletin includes an interesting article explaining A Glance at FY 1391 (2012/13)
National Budget. I hope you will find this article useful and informative.
I would like to take this opportunity to thank the Fiscal Policy Unit for researching and drafting the
Quarterly Fiscal Bulletin for the third quarter of FY 1390. I would also like to extend my appreciations to
the Budget Department, Revenue Department, Treasury Department and other departments for their
valuable input and support. I also thank Making Budget & Aid Works (MBAW) project and Adam Smith
International (ASI) for their continuous technical support to the Unit.
We would value your comments and queries on this publication. Please address your points to Mr. Niaz
Shinwari, Acting Head of the Fiscal Policy Unit of the Ministry of Finance at shinwari.niaz@gmail.com.
I hope you will find this publication useful and interesting. It will soon be available on the Ministry of
Finances website (www.budgetmof.gov.af).
Mohammad Mustafa Mastoor

Deputy Minister for Finance, Ministry of Finance
www.budgetmof.gov.af
www.mof.gov.af
The material in this publication may be freely quoted and reprinted with acknowledgement
Quarterly Fiscal Bulletin, Quarter 3, 1390
CONTENTS
1 SUMMARY OF FIRST QUARTER DEVELOPMENTS ................................................................. 3

1.1 Overall fiscal position....................................................................................................................... 3
1.2 Domestic Revenues and Grants ........................................................................................................ 4
1.3 Expenditures ..................................................................................................................................... 4
1.4 Fiscal sustainability .......................................................................................................................... 6
2 CORE BUDGET REVENUES ............................................................................................................. 7
2.1 Domestic Revenues .......................................................................................................................... 7
2.2 Provincial Distribution of Revenues ................................................................................................ 8
2.3 Tax revenues ..................................................................................................................................... 9
2.4 Customs duties and import taxes .................................................................................................... 10
2.5 Non-tax revenues ............................................................................................................................ 11
2.6 Social Contributions ....................................................................................................................... 11
2.7 Domestic Revenues by Collection Agency .................................................................................... 12
2.8 Grants ............................................................................................................................................. 13
3 CORE BUDGET EXPENDITURES .................................................................................................. 15
3.1 Overview of Core Budget and Expenditures .................................................................................. 15
3.2 Operating Budget by Economic Category ...................................................................................... 16
3.3 Operating Budget by ANDS Sector and Ministry .......................................................................... 17
3.4 Development Budget by Economic Category ................................................................................ 19
3.5 Development Budget by ANDS Sector and Ministry .................................................................... 20
4 FINANCING OF THE CORE BUDGET .......................................................................................... 21
4.1 Public Sector Borrowing Requirement ........................................................................................... 23
4.2 Treasury Single Account ................................................................................................................ 23
5 A closer look at A Glance at FY 1391 (2012/13) National Budget .............................................. 24
6 Tables .................................................................................................................................................... 25
7 Glossary ................................................................................................................................................ 42
1 SUMMARY OF THIRD QUARTER DEVELOPMENTS
Table 1.1 Budget Summary

1389 1389 1390 1390 1390 1390 Compa rison to 1390 Budge t 1390 Y T D
1389 Y T D or M Y R a s % of
Code In millions of Afgha nis Qtr 3 Qtr 3 Qtr 2 Qtr 3 Qtr 3 R e ve nue or T a rge ts/
Actua l Actua l P re lim P re lim P re lim Cha nge % (+/ -) E xpe nditure Budge t
Qtr YT D Qtr Qtr YT D T a rge t
OP E R AT IN G BU D GE T
R e ve nue s 33,257.8 96,988.7 37,460.9 39,740.6 118,155.3 21,166.5 21.8 160,374.8 73.7
Domestic Revenues (1) 20,523.2 57,692.6 23,830.8 24,164.2 71,284.8 13,592.2 23.6 93,663.8 76.1
Operating Grants 12,734.6 39,296.1 13,630.2 15,576.5 46,870.5 7,574.4 19.3 66,710.9 70.3
E xpe nditure s 26,118.3 72,392.8 35,662.1 38,784.5 97,543.5 25,150.7 34.7 150,725.7 64.7
Budge t Ba la nce
Including Grants 7,139.5 24,595.9 1,798.8 956.1 20,611.8 -3,984.2 -16.2 9,649.1
Excluding Grants -5,595.1 -14,700.2 -11,831.3 -14,620.3 -26,258.7 -11,558.6 78.6 -57,061.9
Fisca l susta ina bility indica tor (% ) (2) 78.6 79.7 66.8 -12,913.8 73.1 -6.6 -8.3 62.1
D E V E LOP ME N T BU D GE T
Gra nts (3) 6,888.8 19,675.8 4,991.2 9,232.5 18,671.8 -1,004.1 -5.1 70,072.5 N/A
E xpe nditure s 11,667.0 28,338.7 11,730.6 15,429.0 32,274.9 3,936.2 13.9 101,243.6 31.9
Discretionary Budget 2,805.2 5,311.5 2,885.6 4,062.3 8,195.8 2,884.3 54.3 26,504.0 30.9
Non-discretionary Budget 8,861.9 23,027.2 8,845.0 11,366.7 24,079.1 1,051.9 4.6 74,739.6 32.2
Budge t Ba la nce (3) -4,778.3 -8,662.8 -6,739.3 -6,196.5 -13,603.1 -4,940.3 57.0 -31,171.2
IN T E GR AT E D BU D GE T
R e ve nue s (3) 40,146.6 116,664.6 42,452.2 48,973.2 136,827.1 20,162.5 17.3 230,447.2 N/A
Domestic Revenues 20,523.2 57,692.6 23,830.8 24,164.2 71,284.8 13,592.2 23.6 93,663.8 76.1
Grants (3) 19,623.4 58,971.9 18,621.4 24,809.0 65,542.3 6,570.3 11.1 136,783.4 N/A
E xpe nditure s 37,785.4 100,731.5 47,392.7 54,213.5 129,818.5 29,087.0 28.9 251,969.3 51.5
Ba la nce s
Excluding Grants -17,262.2 -43,038.9 -23,561.9 -30,049.4 -58,533.7 -15,494.8 36.0 -158,305.5
Including Grants (3) 2,361.2 15,933.1 -4,940.5 -5,240.4 7,008.6 -8,924.5 -56.0 -21,522.1
Fina ncing 0.0 N/A
Balance Including Grants 2,361.2 15,933.1 -4,940.5 -5,240.4 7,008.6 -8,924.5 -56.0
Sale of Land and Buildings 13.9 95.2 8.9 9.8 41.4 -53.8 -56.5
Sale of State Owned Enterprises 0.0 0.0 0.0 0.0 0.0 0.0 N/A
Le nding/ Borrowing 2,375.2 16,028.3 -4,931.6 -5,230.5 7,050.1 -8,978.3 -56.0
Source: FPU using AFMIS data downloaded on the 7 March 2012
1. In the published budget document, Afs 13.2 billion in domestic revenues are allocated to the development budget in 1390. In order to ensure comparability with actuals, all domestic
revenues shown under the development budget in the published budget document have been re-allocated to the operating budget in the above table.
2. Fiscal sustainability is measured as domestic revenues as a percentage of operating budget expenditures
3. Actual figures are not comparable to the development/integrated budget grants or balances shown in budget documentation, as grants/balance in budget documentation also
includes loans. Loans are shown as a financing item in the above table.
1.1 Overall Fiscal Position

The core budget surplus including grants were Afs around Afs 4 billion less than that of last year at this
5.2 billion during the third quarter of 1390. The time mainly because of the relatively high growth in
operating budget surplus was Afs 956 million, while annual operating expenditures compare to domestic
the development budget balance had a deficit of Afs revenue in 1390. The YTD development budget also
6.2 billon. Similarly integrated budget balance had a carry a deficit of Afs 13.6 billion associated with
defict of around Afs 5.2 Billion. lack of discretionary funds. However Integrated
The YTD data shows that Operating budget carry budget was in surplus of about Afs 7 billion till the
the surplus of around Afs 20.6 Billion which is end of third quarte (see the chart Figure 1.1).
Quarterly Fiscal Bulletin Page |3 Q3 - 1390

custom duties that will further be explained in their
1.2 Domestic Revenues and Grants respective section later in this report.
Figure 1.1 Total Domestic Revenues
Domestic Revenues 93,664
Domestic revenue collection has been above the

TotalDomestic Targets
budget target since th start of the year. Total Revenue 71,285 74,931
84,297
revenue of Afs 24.2 billion was collected in the 3rd (Afsmillion) 63,663 65,565
quarter 1390 or11% of the quarterly GDP. This was 57,292
Actual collections 57,759
around18% higher than its quarterly target. While 47,121
49,954
comparing it with revenue collection in the same 40,381
42,149
period of last year, collection was around 3% higher. 32,654
34,968
23,290 27,787
Total YTD revenue collection was Afs 71.3 billion 15,451
20,606
until the end of 3rd quarter 1390, which shows an 8,539
13,737
increase of Afs 24% over Afs 57.7 billion collected 6,869 AFMIS data extract 7 March 2012
the same period in 1389. Most of the contribution in

3rd quarter was made by Tax revenues, Non tax
revenues, Social contribution and small amount from
Figure 1.2 - Grant revenues
50.0
Grants 46.9
DonorGrants(Afsbillion) 1389YTD
45.0
1390YTD
Total grants of Afs 24.8 billion (12% of quarterly GDP) 40.0 39.3
were received in the 3rd quarter 1390. The operating 35.0
grant receipts were Afs 15.8 billion (7% of quarterly 30.0
GDP) and the development grants were Afs 9.2 billion 25.0
(4% of quarterly GDP) during this period. This shows 20.0

19.7
18.7
that both operating grant and development grant 15.0
receipts increased by Afs 2.8 billion or (22%) and Afs 10.0
2.3 billion or (33.3%) over the same period receipts in 5.0
1389 respectively. Most of the increase in operating
grants receipts come through CSTC-A and LOTFA that OperatingGrants DevelopmentGrants
AFMIS data extract 7 March 2012
funds increased security spending of ANA and ANP.
1.3 Expenditures
Total core budget for FY 1390 is Afs 251.9 billion (or about 35% of the projected GDP), which includes an operating
budget of Afs 150.7 billion and a development budget of Afs 101.2 billion.
The core budget expenditures in the 3rd quarter of 1390 were Afs 54.2 billion. While comparing YTD 1390s core
budget expenditures of Afs 129.8 billion or51.5% of the allocated budget with YTD actual of Afs 100.7 billion
in1389, it shows a growth rate by 28.9%. Looking at the components of the core budget (operating and development),
the difference is mainly explained by increased spending on wages and salaries of the teachers, security forces and the
fact that both civil servants and teachers are paid the increase Pay & Grading Salaries in most of the ministries.
Quarterly Fiscal Bulletin Page |4 Q3 1390

Operating Budget
Operating expenditures consists of wages and salaries, goods and services, capital expenditures to conduct day-
to-day operations of the government. It also includes minor interest payments and other social transfers. It should
be kept in mind that operating expenditures has been increasing in the past couple of years as a result of the
increase in the numbers of the school teachers and soldiers and the rapid implementation of Pay & Grading
reforms that basically pays higher wages to civil servants and teachers as apposed to the old system.
The operating budget for 1390 increased to Afs 150.7 billion from Afs 110.5 billion in 1389. The increased amount
(Afs 40.2 billion or 5.6% of GDP) was allocated for wages and other expenditures such as the increased security
forces (ANA and ANP), higher pension spending and the further implementation of the Pay & Grading reforms of the
Government.
The total operating expenditure during the the 3rd quarter was Afs 38.8 billion compared to Afs 26.1 billion spent
the same period in 1389.
Development Budget
The total original development budget for the year 1390 was Afs 74 billion, which was later increased to Afs
101.2 billion after the inclusion of the supplementary projects from 1389. The discretionary projects consist of
Afs 24.2 billion and Afs 74.3 billion has been allocated to non-discretionary development projects. The total
revenue to finance the development expenditures is Afs 83.3 billion, including Afs 13.2 from the domestic
revenues (including Aynak) and Afs 69.9 billion donor grants. There an associated deficit of Afs 17.9 billion
with an identified financing of Afs 5.8 billion and the rest, Afs 12.1 billion, is still unidentified.
The total development budget expenditures were Afs 15.4 billion or (15% of the total FY Development Budget) in the
3rd quarter 1390. Development expenditures was Afs 3.7 billion or 32% higher compared to Afs 11.7 billion spent the
same period in 1389 The YTD development expenditures were Afs 32.3 billion till the end of 3rd quarter 1390, around
14% higher compared to the actual amount of Afs 28.3 spent in the same period 1389 hence showing improved
execution rate beyond what was committed in Kabul Confeence (10% increase in obsolute spending).. This indicates
that the development budget execution rate was about 32% till the end of 3rd quarter of 1390. One would expect over
half of the development budget to expended till the end of the fical year.
Figure 1.3 Operating Budget Figure 1.4 Development Budget

150,726 Budget targets
Budget target
OperatingBudget 138,166 (including supplementary
budget and carry-forward)
125,605
DevelopmentBudget 101,220
Expenditure 113,045
92,785
(AfsMillion)
100,484
87,924
Expenditure 75,915
84,350
97,544
(Afsmillion) 67,480
75,363 85,778 59,045
1389 expenditure Budget target
62,803 50,610
70,751 (excluding carry-forward)
50,242 58,759 42,175
Actual expenditure
49,013 33,740 32,275
37,682
35,467 25,305 26,335
25,121 Actual expenditure 21,857 1389 expenditure
16,870 16,846
12,561 23,097
8,435 11,474
10,833 7,824
1,606 5 2,641 5,115 AFMIS data extract 7 March 2012

normally increases in the 2nd half of fiscal year as
1.4 Fiscal sustainability
mos to the receipt is collected in the second half of
In Afghanistans context, fiscal sustainability is the fiscal year.
defined as total operating expenditures being fully
funded by total domestic revenues. Fiscal
Figure 1.5 Fiscal sustainability: Domestic revenues as a
sustainability has remained as one of the key percentage of Operating Expenditures
objectives under the Government and IMFs proposed
120%
new economic program, the Extended Credit Facility.
During the 3rd quarter 1390, total domestic revenue 100%
Quarter Year to date

were Afs 24.2 billion, while total operating 80%
expenditures were Afs 38.8 billion. In other words,
only 62.4% of our operating expenditures in the 3rd 60%
quarter of 1390 were financed using domestic

revenues. While comparing YTD Q3 1390 with 40%
YTD Q3 1389, fiscal sustainability indicator has 20%

greatly improved from below 60.0% to around
70.0%. This shows that increase in the collection of 0%
domestic revenues were faster than operating budget Q1

1388
Q2 Q3 Q4 Q1
1389
Q2 Q3 Q4 Q1
1390
Q2 Q3
expenditures in the 3rd quarter. This was true, as

historically the performance of domestic revenues

2 CORE BUDGET REVENUES
Table 2.1 1390 Q3 revenues

1389 1389 1390 1390 1390 1390 1390 Compa rison to YT D T a rge t Annua l %
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 1389 YT D 1390 T a rge t - T a rge t (2) Annua l
Code In millions of Afghanis
Actua l Actua l Pre lim P re lim Pre lim Pre lim Qtr 3 Actua l T a rge t
Qtr YT D Qtr Qtr Qtr YT D Cha nge % (+/ -) YT D % (+/ -)
COR E BU D GET
1 R EVEN U ES including gra nts (1) 40,146.6 116,664.6 45,401.7 42,452.2 48,973.2 136,827.1 20,162.5 17.3
1-19 R EVEN U ES e xcluding gra nts 20,523.2 57,692.6 23,289.9 23,830.8 24,164.2 71,284.8 13,592.2 23.6 65,564.7 8.7 93,663.8 76.1
D OMEST IC R EVEN U ES (2) (3) 20,523.2 57,692.6 23,289.9 23,830.8 24,164.2 71,284.8 13,592.2 23.6 65,564.7 8.7 93,663.8 76.1
11 T a x R e ve nue s 9,622.6 27,555.7 9,346.8 10,455.7 11,891.5 31,694.0 4,138.3 15.0 32,336.1 -2.0 46,194.5 68.6
111 Fixed Taxes 2,359.2 6,727.8 2,280.4 2,483.3 2,533.9 7,297.7 569.9 8.5 8,620.2 -15.3 12,314.6 59.3
112 Income Taxes 2,400.6 7,159.1 2,842.7 2,541.1 3,460.0 8,843.7 1,684.6 23.5 8,314.8 6.4 11,878.2 74.5
113 Property Taxes 51.7 163.2 102.9 85.7 80.9 269.6 106.4 65.2 230.9 16.8 329.8 81.7
114 Sales Taxes 4,251.5 11,590.5 3,597.2 4,561.9 4,849.8 13,008.9 1,418.4 12.2 13,297.2 -2.2 18,996.0 68.5
116 Other Taxes 389.2 1,499.0 388.3 628.8 853.9 1,870.9 371.9 24.8 1,373.4 36.2 1,962.0 95.4
117 Tax Penalties and Fines 170.4 416.1 135.3 154.9 113.0 403.2 -12.8 -3.1 499.6 -19.3 713.8 56.5
12 Customs D uty, Import T a xe s 7,311.2 20,506.5 7,810.1 7,939.7 7,769.5 23,519.2 3,012.7 14.7 22,779.8 3.2 32,542.6 72.3
13 N on T a x R e ve nue 2,917.7 8,084.4 5,701.9 4,286.8 3,541.6 13,530.3 5,445.9 67.4 8,501.0 59.2 12,144.3 111.4
131 Income from Capital Property 71.1 223.7 2,480.4 68.0 115.3 2,663.7 2,440.0 1,090.8 259.7 925.9 370.9 718.1
132 Sales of Goods and Services 1,061.7 3,028.9 1,255.6 1,151.7 1,226.5 3,633.7 604.8 20.0 2,905.3 25.1 4,150.4 87.6
133 Administrative Fees 1,688.7 4,596.5 1,721.4 2,845.8 2,012.3 6,579.5 1,983.0 43.1 5,058.6 30.1 7,226.6 91.0
134 Royalties 6.8 23.3 41.7 67.1 25.2 134.0 110.7 474.9 86.4 55.1 123.4 108.6
135 Non Tax Fines and Penalties 89.4 211.9 190.5 126.0 121.1 437.6 225.7 106.5 191.1 129.0 273.0 160.3
136 Extractive Industry 0.0 0.0 12.3 28.2 41.2 81.7 81.7 N/A 818.5 -90.0 1,169.3 7.0
14 Misce lla ne ous R e ve nue 252.9 416.6 -86.9 495.9 208.2 617.2 200.6 48.2 818.5 -24.6 1,169.3 52.8
17 Socia l Contributions 418.7 1,129.4 518.0 652.7 753.4 1,924.1 794.6 70.4 1,129.2 70.4 1,613.2 119.3
GR AN T S (1) 19,623.4 58,971.9 22,111.9 18,621.4 24,809.0 65,542.3 6,570.3 11.1

191 Foreign Governments 14,445.8 42,683.3 18,035.6 14,296.6 16,847.5 49,179.6 6,496.4 15.2
192 International Organisation 5,177.6 15,972.8 4,076.3 4,182.1 7,906.6 16,165.0 192.2 1.2
193 Other Government Units 0.0 315.9 0.0 142.8 54.9 197.7 -118.3 -37.4
T OT AL OPER AT IN G BU D GET R EV EN U E 33,257.8 96,988.7 40,953.7 37,460.9 39,740.6 118,155.3 21,166.5 21.8 160,374.8 73.7
Domestic Revenues 20,523.2 57,692.6 23,289.9 23,830.8 24,164.2 71,284.8 13,592.2 23.6 65,564.7 8.7 93,663.8 76.1
as percentage of total 61.7 59.5 56.9 63.6 60.8 60.3 64.2
External Grant Support 12,734.6 39,296.1 17,663.8 13,630.2 15,576.5 46,870.5 7,574.4 19.3 66,710.9 70.3
1. Actual figures are not comparable to the development/ integrated budget grants or balances shown in budget documentation, as grants/ balance in budget documentation also includes loans. Loans are shown as a financing item in above table.
2. Revenues exclude proceeds from the sale of fixed assets (150), and loans (18). These items are included under financing.
3. In the published budget document, Afs 13.2 billion in domestic revenues are allocated to the development budget in 1390. In order to ensure comparability with actual, all domestic revenues shown under the development budget in the published
budget document have been re-allocated to the operating budget in the above table.
2.1 Domestic Revenues

Total revenue target for fiscal year 1390 is Afs 93.7 billion in the national budget. This budget revenue target of
Afs 93.7 billion is 17% higher than the actual revenue collections of Afs 80.4 billion in 1389.
The quarterly breakdown of the total revenue target is based on the quarterly distribution of actual domestic
revenues over recent years. It is assumed that 22% of annual revenues will be collected in Q3, 23% in Q3, 25%
in Q3 and 31% in Q4. This means that the 1390 third quarter target of total revenues of Afs 23.4 billion accounts
for 25% of the annual revenue target. Total domestic revenue of Afs 24.2 billion (11% of quarterly GDP) was
collected in the third quarter that shows increases of only 3% against the quarterly target, and 18% compared to
the same quarter of 1389. Most of the increase in this quarter comes from income taxes, sales taxes and other
taxes in the Tax Category Whilst in Non-tax Category, most of the revenues come from Sales of Woods in
Kunar Province and Registration of Motor Vehicles (right handed), and Social Contribution that will be
explained in their respective sections.

Figure 2.1 Domestic Revenues (1390 vs. 1389 YTD)
35.0
31.7 32.3 DomesticRevenue(Afsbillion)
30.0 1389YTD
27.6
1390YTD
25.0 23.5
22.8 1390YTDTarget
20.5
20.0
15.0 13.5
10.0 8.1 8.5
5.0
2.5 1.9
1.5

TaxRevenues CustomsDuty,Import NonTaxRevenue SocialContributions
Taxes andMiscellaneous
2.2 Provincial Distribution of Revenues
Table 2.2 1390 Provincial Revenues

T ota l R e ve nue s T a xa tion R e ve nue s Customs D utie s N on T a x Re ve nue s Othe r R e ve nue s
1389 1390 % 1389 1390 1389 1390 1389 1390 1389 1390
In millions of Afgha nis Qtr 3 Qtr 3 Incre a se Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3
Actua l Pre lim Actua l Pre lim Actua l Pre lim Actua l Pre lim Actua l Pre lim
YT D YT D YT D YT D YT D YT D YT D YT D YT D YT D
T OT AL R EVEN U E 57,692.6 71,284.8 23.6 27,555.7 31,694.0 20,506.5 23,519.2 8,084.4 13,530.3 1,546.1 2,541.3
T ota l Province s 36,471.9 43,923.9 20.4 13,645.4 15,321.7 18,773.4 22,146.5 3,305.7 4,865.5 747.5 1,590.3
Nangarhar 7,995.7 7,633.3 -4.5 3,017.4 2,752.0 4,597.9 4,292.1 319.3 433.7 61.0 155.4
Balkh 7,216.3 6,870.6 -4.8 2,385.5 2,429.6 4,283.4 3,743.8 465.3 500.4 82.1 196.9
Kandahar 2,532.4 2,837.7 12.1 1,123.5 897.0 1,069.0 1,443.1 279.7 416.6 60.2 81.1
Herat 10,883.0 14,301.9 31.4 3,880.1 4,848.0 6,049.7 8,184.9 876.4 1,120.3 76.8 148.7
Nimroz 2,817.0 2,741.2 -2.7 1,008.4 1,055.7 1,541.1 1,440.3 258.4 231.1 9.1 14.2
Other Provinces 5,027.6 9,539.2 89.7 2,230.5 3,339.5 1,232.2 3,042.3 1,106.5 2,163.4 458.4 994.0
Ce ntra l Ministrie s 21,220.7 27,360.8 28.9 13,910.3 16,372.4 1,733.2 1,372.7 4,778.7 8,664.8 798.5 951.0
Table 2.2 shows revenue collections by category based on location classification (Provinces and Line Ministries).
The contribution by Central Ministries increased significantly that collected Afs 27.4 billion (4.2% of YTD Q3
GDP) until the third quarter 1390, an increase of Afs 6.1 billion or (28.9%) over Afs 21.2 billion (3.9% of YTD
Q3 GDP) collected the same period in 1389. Whereas Provinces also increased their contribution to Afs 43.9
billion (6.8% of YTD Q3 GDP) until 3rd quarter 1390, an increase of Afs 7.4 billion or (20.4%) over Afs 36.5
billion (6.7% of YTD Q3 GDP) collected the same period in 1390.
Taxation Category: Total YTD tax revenues of Afs 15.3 billion were collected by the Provinces until 3rd
quarter 1390 compared to Afs 13.6 billion the same period 1389, an increase of Afs 1.7 billion or (12%) to
the total taxes. While the Central Ministries collected Afs 16.4 billion until 3rd quarter 1390 compared to Afs
13.9 billon the same period 1389, an increase of Afs 2.5 billion or (18%) to the total taxes.
Custom duties: The Provinces collected total YTD custom duties of Afs 22.1 billion compared to Afs 18.8
billion the same period in 1389, which shows an increase of Afs 3.4 billion or (18%) to the total increase in
duties. The total duties of Afs 3.0 billion collected by other provinces which shows an increase of Afs 1.8
billion or (147%) over Afs 1.2 billion collected the same period in 1389.

Non-Tax Revenues: Central Ministries contributed significant amount to the total increase in non tax
revenues, which collected Afs 8.7 billion (including Afs 2.4 billion receipts from Aynak) until 3rd quarter
1390 compared to Afs 4.8 billion the same period in 1389, an increase of Afs 3.9 billion or (81%) to the total
increase in non tax revenues.
billion collected the same period 1389. The main
2.3 Tax revenues
contributors to the sales tax increase include:
Tax revenue consists of fixed taxes, income taxes,
property taxes, sales taxes, other taxes and tax
penalties and fines. Tax revenue is always one of the
main contributors to the total domestic revenues.
Total tax revenues of Afs 11.9 billion (6% of Q3 Receipts Pvt Entities, 2% BRT collected Afs 424
GDP) were collected in the 3rd quarter 1390, which million and BRT on Services 10% collected Afs
shows an increase of Afs 2.3 billion or (24%) over 164 million of the additional sales taxes revenues in
Afs 9.6 billion (5% of Q3 GDP) collected the same the 3rd quarter 1390. Whereas BRT on Imports did
period in 1389. And total collected tax revenues also not perform well in the 3rd quarter.
shows 3.0% increase against the quarterly target. Other taxes: Afs 854 billion of other taxes were
Among the major components, Income taxes, Sales collected in the 3rd quarter 1390, which shows an
taxes and other taxes were the main contributors to increase of Afs 465 million or (19%) over Afs 389
the total tax increases: million collected the same period in 1389, the
increase mainly come from Road License Motor
Incomes taxes: Total income taxes of Afs 3.5 Vehicles that collected Afs 363 million of the
billion were collected in the 3rd quarter 1390, an additional other tax revenues in the 3rd quarter 1390.
increase of Afs 1.1 billion or (44%) over Afs 2.4
billion collected the same period in 1389. The main
increase in the income taxes came from components Figure 2.2 - Tax revenues, Afs billion
such as Employees Salaries and Wages collected
Afs 552 million and Withholding Taxes on
TaxationRevenue Targets 46,194
(Afsmillion) 41,575
Interest collected Afs 612 million of the additional 36,956
income tax revenues in 3rd quarter. Most the 31,694
32,336
additional tax revenue collected through employees 28,072
28,487
25,281
salaries and wages, come from the increased Actual collections 24,637
19,803
additional wages (code 21) budget in the national 16,816
20,788
17,246
budget that comprises around 80% of the operating 13,601
13,704
expenditures. 6,065
9,347
10,163
3,190 6,775
Sales taxes: Total sales taxes of Afs 4.9 billion were 3,388 AFMIS data extract 7 March 2012
collected in the 3rd quarter 1390, this shows an
increase of Afs 598 million or (14%) over Afs 4.3
Major increases in specific tax revenues

1389 1390
Difference
Main Components of Tax Revenues 3rd Quarter 3nd Quarter % Increase
AllValuesinmillionAfghanis
Imports by Licensed Business (Fixed Taxes) 1,892 1,887 (5) 0.3%
Employees Salaries & Wages (Income Taxes) 1,225 1,776 552 45.0%
2% BRT on Imports (Sales Taxes) 1,988 1,992 4 0.2%
BRT on Services 10 % (Sales Taxes) 1,204 1,368 164 13.7%
Receipts Pvt Entities 2% BRT (Sales Taxes) 1,053 1,477 424 40.3%

2.4 Customs duties and import taxes
Around 50 percent of the total domestic revenues come from the imports of which custom duties makes about 35
% of the total budgeted revenues for 1390. Total custom duties of Afs 7.8 billion (4% of Q3 GDP) were collected
in the 3rd quarter 1390, which shows an increase of Afs 458 million or (6%) over Afs 7.3 billion (4% of Q3 GDP)
collected the same period in 1389. While compared to its quarterly target of Afs 8.1 billion, it shows a 5%
reduction.
The following 5 major custom offices collect about 87% of the total custom duties and import taxes during 3rd
quarter 1390.
Herat customs offices, which contains two main custom offices of Torghundi and Islam Qala, collected
Afs 2.3 billion in the 3rd quarter of 1390, compared to Afs 2.3 billion collected the same period in 1389, an
increase of Afs 30 million or (1%). While against its quarterly target, it shows 25% reduction.
Nangarhar customs office collected Afs 1.3 billion in the 3rd quarter of 1390, compared to Afs 1.6 billion
collected the same period in 1389, which shows a shortfall of Afs 321 million or (20%).
Balkh customs office collected Afs 1.2 billion during this period compared to Afs 1.4 billion collected the
same period in 1389, a shortfall of Afs 199 million or (14%).
Kandahar customs office, on the other hand, collected Afs 622 million in the 3rd quarter of 1390 compared
to Afs 352 million collected the same period, which shows increases of Afs 270 million or (177%).It also
shows increase by 138% against its quarterly target.
Nimroz customs office collected Afs 488 million compared to Afs 598 million collected the same period in
1389, a shortfall of Afs 110 million or (82%).
It seems that all major custom offices except Kandahar custom office, did not performed well, even some of
them were not able to collect the same level of duties that were collected the same period in 1389.
Figure 2.4 - Customs revenues in 'top 5' provinces, Q3

Figure 2.3 Custom duties
Targets Balkh; 1181.6m
CustomsRevenue 32,543 collected, 1465.9m
(Afsmillion) target (81%)
29,288
23,519
26,034
21,139
Herat; 2294m
Actual collections 22,780 collected,
18,979
20,068 3061.9m target Nangarhar;
15,750 (75%) 1310.6m
17,356
13,511 collected,
10,830
14,644 1916.1m target
12,149 Nimroz; 487.9m Kandahar; (68%)
7,810
9,654 collected, 622.1m collected,
4,786
7,159
605.7m target 449.9m target
2,148 4,773 (81%) (138%)
2,386
Quarterly Fiscal Bulletin P a g e | 10 Q3 - 1390

2.5 Non-tax revenues
Non-tax revenues consist of income from capital property, sales of goods and services, administrative fees,
royalties and non-tax penalties and fines. Non tax revenues continued to its good performance, and collected
around Afs 3.5 billion (2% of Q3 GDP) in the 3rd quarter of 1390 as compared to Afs 2.9 billion or 2% of Q3
GDP (collected the same period in 1389) and quarterly target of Afs 3.0 billion, which shows increases of Afs
624 million or (21%) and Afs 506 million or (17%) respectively. The main components amongst the contributors
include as:
Administrative fees collected around Afs 2.0 billion in the 3rd quarter of 1390 compared to Afs 1.7 billion
collected the same period 1389, this shows an increase of Afs 324 million (19%). The main increase in this
category come from Registration Motor Vehicles collected Afs 174 million and License Sold by SOEs
collected Afs 117 million of the total increase in the administrative fees.
Sales of goods and services collected around Afs 1.2 billion during the 3rd quarter of 1390 compared to Afs
1.1 billion collected the same period 1389, an increase of Af 165 million or (16%). The main increases in this
category come from Truck Commission and Transport Services collected Afs 55 million and Afs 39
million of additional of non tax revenues respectively.
Figure 2.5 Non-tax revenues, Afs millions Figure 2.6 Social Contribution receipts, Afs millions
Targets
NontaxRevenue 13,530
SocialSecurity Targets
(Afsmillion)
11,273
12,305
10,930
12,144
Revenue 1,924
1,709
9,989 9,715 (Afsmillion)
Actual collections 8,501
1,411
1,613
8,775 1,452
7,489
7,450 Actual collections 1,171 1,291
6,477
1,129
5,702 5,465 969
995
4,426 4,534 728 860
3,246 3,603 726
518
2,672 602
1,781 479
271
891 355
AFMIS data extract 7 March 2012 118 237 AFMIS data extract 7 March 2012
12
2.6 Social Contributions

Social contributions include government employee contributions for retirement and pension purposes to fund the
well being of retired employees in the future. Revenue from social contribution increased significantly over the
last two quarters due implementation of new pension regulation and pay&grading reforms in various ministries.
Total revenues of Afs 753 million (0.3% of Q3 GDP) were collected in the 3rd quarter 1390, which shows an
increase of Afs 335 million or (80%) over Afs 419 million (0.2% of Q3 GDP) collected the same period in 1389.
The revenue from social contribution also increased its quarterly target by 87%.

2.7 Domestic Revenues by Collection Agency
Table 2.3 1390 Revenues by Collection Agency
T ota l R e ve nue s T a xa tion R e ve nue s Customs D utie s N on T a x R e ve nue s Othe r R e ve nue s
1389 1390 % 1389 1390 1389 1390 1389 1390 1389 1390
In millions of Afgha nis Qtr 3 Qtr 3 Incre a se Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3
Actua l P re lim Actua l P re lim Actua l P re lim Actua l P re lim Actua l P re lim
YT D YT D YT D YT D YT D YT D YT D YT D YT D YT D
11 T OT AL R E V E N U E 57,692.6 71,284.8 23.6 27,555.7 31,694.0 20,506.5 23,519.2 8,084.4 13,530.3 1,546.1 2,541.3
Ministry of Fina nce 49,921.2 58,977.1 18.1 26,576.8 30,857.0 20,468.4 23,476.3 2,091.0 3,220.7 785.0 1,423.1
Mustofiats (1) 4,085.3 6,357.0 55.6 2,231.1 2,795.3 0.0 0.0 1,181.5 2,164.8 672.7 1,396.9
Customs (1) 33,095.8 36,748.3 11.0 11,823.1 12,339.5 20,468.4 23,476.3 792.5 914.4 11.8 18.1
Large Taxpayer Office (LTO) 8,549.0 10,306.5 20.6 8,515.6 10,299.8 0.0 0.0 31.8 6.0 1.6 0.6
Medium Taxpayer Office 4,058.1 5,456.0 34.4 4,006.4 5,427.0 0.0 0.0 51.6 29.1 0.1 -0.0
Small Taxpayer Office 0.6 0.0 -100.0 0.6 0.0 0.0 0.0 0.0 0.0 -0.0 0.0
Other Ministry of Finance 132.4 109.2 -17.5 0.0 -4.7 0.0 0.0 33.5 106.4 98.8 7.5
Total taxation collections by ARD (2) 15,732.6 19,354.5

Total LTO collections as % of total taxation collections by ARD 54.3 53.3
Othe r Ministrie s 7,771.4 12,307.7 58.4 978.9 837.1 38.1 42.9 5,993.4 10,309.6 761.0 1,118.1
Ministry of Transport and Aviation 2,444.4 2,904.9 18.8 1.2 3.0 0.0 0.0 2,443.2 2,901.5 0.0 0.4
Ministry of Interior 1,971.3 3,068.8 55.7 968.6 810.5 0.0 0.0 990.0 2,248.3 12.7 10.0
Ministry of Communication 1,161.6 1,181.2 1.7 0.0 0.0 0.0 0.0 1,153.8 1,181.1 7.9 0.0
Ministry of Foreign Affairs 531.9 313.1 -41.1 0.0 0.0 0.0 0.0 530.1 311.8 1.8 1.3
Ministry of Martyrs, Disabled and Social A 678.9 1,042.0 53.5 0.0 0.0 0.0 0.0 119.1 104.7 559.8 937.3
Other Budgetary Units 983.3 3,797.8 286.2 9.0 23.5 38.1 42.9 757.2 3,562.2 178.9 169.1
(1) All revenue collections for Object codes 11106,11107,11109,11110,11404,12000-12007,13331,13348 have been reallocated to the Customs office given these revenues are collected at the border, however in AFMIS these
revenues are sometimes allocated under Mustofiats.
(2) Afghanistan Revenue Department taxation revenues (ARD) are measured as total taxation revenues minus Customs Office taxation revenues
Table 2.3 shows what revenue agencies that were responsible for the changes in revenue collections between
YTD Q3 of 1389 and YTD Q3 of 1390. Total revenue increase between these two periods was Afs 13.6 billion
or (24%) that was contributed by the following agencies:
The Other Ministries contributed Afs 4.5 billion, of which Ministry of Interior contributed Afs 1.1
billion and Other Budgetary Units such as Ministry of Mines (collected Afs 2.4 billion of additional
revenues) during this period.
The Custom offices collected Afs 3.7 billion of the additional revenues. The additional revenues include
Afs 3.0 billion custom duties and the rest were tax revenues.
The Larger Taxpayer Offices (LTO) and Medium Taxpayer Offices (MTO) collected Afs 1.8 billion
and Afs 1.4 billion of the additional revenues during this period. While Mustofiates collected Afs 2.3
billion of the revenues.

2.8 Grants
Donor grants comprise a crucial part of the National Budget as they finance over nearly 40% of the operating
budget expenditures, especially security related expenditures and almost the entire development budget with a
small proportion being financed usingconcessional loans and part of the domestic revenues.
Total grants receipts were Afs 24.8 billion (12% of Q3 GDP) in the 3rd quarter compared to Afs 19.6 billion
(11% of Q3 GDP) disbursed the same period in 1389, an increase of Afs 5.2 billion or (26%) to the total grants
disbursements. This increase in grants receipts come in both operating and development budget explained in
details below.
Operating Grants
The total operating grants disbursements were Afs 15.6 billion (7% of Q3 GDP) in the 3rd quarter of 1390,
implying an annual increase of Afs 2.8 billion or (22%) over Afs 12.7 billion (7% of Q3 GDP) disbursed the
same period in 1389. Grants that were received through the CSTC-A for MoD and MoI mostly increased in
this quarter. The receipts of the Ministry of Defence were Afs 6.2 billion (an increase by 1.5 billion) over Afs
4.6 billion disbursed the same period in 1389. While the CSTC A receipts by Ministry of Interior were Afs 3.1
billion in 1390 compare to nothing in 1389. Ministry of Interior also received Afs 6.2 billion through LOTFA in
the third quarter; however, it was reduced compared to the same period in 1389.
Figure 2.7 - Operating grant revenues, Afs billions Table 2.4 - Operating grants, Afs millions
54,466 1389 1389 1389 1390 1390 1390 1390
TotalOperatingGrants 50,754 AllValuesareinMillionAfs Qtr3 Qtr3 %ofTotal Qtr2 Qtr3 Qtr3 %ofTotal
46,870 Qtr YTD Qtr Qtr YTD
Revenue 46,769
39,296
39,323
10001
AfghanistanReconstructionTrust
0 9,994 25% 0 100 1,218 3%
(Afsmillion) 40,693
36,769
Fund(ARTF)
31,294 10002 Law&OrderTrustFund(LOTFA) 8,042 18,976 48% 5,944 6,171 18,182 39%
29,861 31,333
1390 grants receipts 1389 grant receipts CombinedSecurityTransitional
26,562 10004 4,640 10,269 26% 7,622 6,169 19,766 42%
17,683 CommandAfghanistan(CSTCA)MoD
17,664 19,898
14,163
CombinedSecurityTransitional
6,806
11,326 11,528 10005 0 0 0% 0 3,135 7,640 16%
CommandAfghanistan(CSTCA)MoI
11,279
3,339 AFMIS data extract 7 March 2012
Development Grants
Total development grants receipts were Afs 9.2 billion (4% of Q3 GDP) for the 3rd quarter compared to Afs 6.9
billion (4% of Q3 GDP) the same period in 1389. This shows an increase of Afs 2.3 billion or (33%) in the
disbursement of development grants during this period. And it also shows that the execution of the development
projects increased during this quarter that led to increased donor funding to development budget.
During 3rd quarter, the largest grant recipients include t, Third Emergency National Solidarity Project, which
was funded by ARTF, disbursed Afs 3.2 billion. The second recipient was, Primary Education Program
Support (Multi Donor Grants) that was funded by Denmark, disbursed Afs 965 million. The other recipients
were Road Network Development Investment Program. This project was funded by Asian Development
Bank, disbursed AFs 695 million.

Figure 2.8 - Development grant revenues, Afs billions Table 2.5 - 10 largest development grant receipts in Q3, Afs
million
TotalDevelopment 1389 grant receipts
22,850
25,523 TF098459AFThirdEmergency
NationalSolidarityProject
ARTF 3,222
Grants Revenue 19,676

20,569
PrimaryEducationProgramSupport
(Moe)Denmark
MultiDonorGrants 965
0135RoadNetworkDevelopment
(Afsmillion) 16,997 AsianDevelopmentBank 695
InvestmentProgramProject1
18,672
93962SecondEducationQuality
14,947 ARTF 506
15,594 ImporvementProject
12,787 H49803rdAdditionalFinancing
12,849 EmergencyIrrigationRehabilitation WorldBankOthers 386
8,856 1390 grants receipts Project
6,270 9,439 H581AFaddfinforstrengthening
4,275 6,929 HealthActivitiesfortheruralPoor( WorldBankOthers 264
3,338 5,752 Sharp)
1,948 4,448
H3540EducationQualityImprovement
2,865 AFMIS data extract 7 March 2012 WorldBankOthers 255
347 Prgogram
91885HorticultureandLiveStock
ARTF 228
Project
0126AgricultureMarket
AsianDevelopmentBank 193
InfrastructureProject
0230RegionalPowerTransmission
AsianDevelopmentBank 193
InterconnectionProject
AFMISdataextract7March2012

3 CORE BUDGET EXPENDITURES
Table 3.1 1390 Q3 expenditures

1389 1389 1390 1390 1390 1390 Compa rison to Budge t 1390 Compa rison to
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 R e vise d Curre nt % 1389 Y T D
Code I n millions of Afghanis
Actua l Actua l P re lim P re lim Pre lim P re lim Budge t Alloca te d Alloca te d %
Qtr YT D Qtr Qtr Qtr YT D Budge t (4) Budge t Cha nge Incre a se
2 T OT AL GR OSS EXPE N D IT U R E S 37,785.4 100,731.5 28,212.3 47,392.7 54,213.5 129,818.5 251,969.8 251,969.8 51.5 29,087.0 28.9
Operating Budget 26,118.3 72,392.8 23,096.9 35,662.1 38,784.5 97,543.5 150,726.1 150,726.1 64.7 25,150.7 34.7
Development Budget 11,667.0 28,338.7 5,115.3 11,730.6 15,429.0 32,274.9 101,243.6 101,243.6 31.9 3,936.2 13.9
Discretionary Budget 2,805.2 5,311.5 1,247.9 2,885.6 4,062.3 8,195.8 26,504.0 26,504.0 30.9 2,884.3 54.3
Non-discretionary Budget 8,861.9 23,027.2 3,867.4 8,845.0 11,366.7 24,079.1 74,739.6 74,739.6 32.2 1,051.9 4.6
2* T OT AL N ET E XP EN D IT U R E S (2) 37,771.4 100,636.3 28,189.6 47,383.8 54,203.7 129,777.0 29,140.7 29.0
2-25 R E CU R R EN T EXPE N D IT U R ES 30,262.9 82,926.2 24,293.6 40,031.8 43,719.3 108,044.7 N/A 197,627.6 54.7 25,118.5 30.3
21 Compe nsa tion of Employe e s 20,623.1 58,332.9 19,783.5 28,262.3 28,490.2 76,536.0 109,884.0 114,553.0 66.8 18,203.0 31.2
Development Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A 0.0 N/A
22 U se of Goods a nd S e rvice s 8,121.3 19,670.9 3,460.8 9,375.7 13,190.3 26,026.9 N/A 68,120.7 38.2 6,356.0 32.3
Development Budget 4,421.4 10,716.8 1,369.3 4,725.2 5,516.2 11,610.7 N/A 40,007.1 29.0 893.9 8.3
23 Inte re st (1) 34.8 72.2 37.5 7.2 39.7 84.5 350.0 350.0 24.1 12.3 17.0
Operating Budget 34.8 72.2 37.5 7.2 39.7 84.5 350.0 350.0 24.1 12.3 17.0
Development Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A 0.0 N/A
24 Subsidie s a nd T ra nsfe rs 1,483.7 4,850.2 1,011.8 2,386.6 1,999.0 5,397.4 14,604.0 14,604.0 37.0 547.2 11.3
Operating Budget 1,483.7 4,433.8 1,011.8 2,386.6 1,999.0 5,397.4 0.0 14,604.0 37.0 963.6 21.7
Development Budget 0.0 416.3 0.0 0.0 0.0 0.0 14,604.0 0.0 N/A -416.3 -100.0
25 ACQU ISIT ION OF AS SE T S

25 Gross Acquisition of N onfina ncia l Asse ts 7,522.5 17,805.3 3,918.6 7,360.9 10,494.2 21,773.7 N/A 64,449.0 33.8 3,968.5 22.3
Operating Budget 276.9 599.7 172.6 355.5 581.4 1,109.5 2,927.4 3,734.5 29.7 509.8 85.0
Development Budget 7,245.6 17,205.5 3,746.0 7,005.4 9,912.8 20,664.3 N/A 60,714.5 34.0 3,458.7 20.1
25* N e t Acquisition of N onfina ncia l Asse ts (2) 7,508.6 17,710.1 3,895.9 7,352.0 10,484.4 21,732.3 N/A 4,022.2 22.7
Operating Budget 263.0 504.5 149.9 346.6 571.6 1,068.0 N/A 563.5 111.7
Development Budget 7,245.6 17,205.5 3,746.0 7,005.4 9,912.8 20,664.3 N/A 3,458.7 20.1
1/ Interest Only. Does not include loan principal payments

2/ Proceeds from sale of fixed assets are netted off from the total
3/ Budget and Revised Budget figures of core budget are not available for goods and services (code 21) and capital (code 25) as the published development budget is not broken down into these categories.
4/ Total allocated budget is the same as the Budget ceiling. However, individual items for current allocated Budget do not add up to total published budget as they do not include contingency reserves not yet transferred to budgetary units. Published budget
figures are used for interest (code 23) and subsidies and transfers (code 24).
3.1 Overview of Core Budget and Expenditures

Figure 3.1 Total Expenditures by Economic category
Total Core Budget in 1390 is Afs 251.9 billion or (1389 and 1390 YTD)
almost 29.2% of GDP, of which Afs 150.7 billion is 140.0
allocated to the operating budget and the remaining 120.0

Expenditurebyeconomiccategory
114.6
(Afsbillion)
1389YTD
Afs 101.2 billion goes to development budget. 100.0 1390YTD
The aggregate YTD expenditure has increased in 3rd 80.0 76.5

1390Budget
quarter of 1390 to Afs 129.8 billion by about 28.9 58.3 60.7

60.0
percent compare to 1389 YTD expenditures of Afs
40.0
100.7 billion. Around 34.7 percent the additional 40.0
28.1
spending came from operating budget while around 20.0 14.4
11.6
17.2
20.7
15.0
9.0 10.7
13.9 percent was in the development budget. As 0.61.1
3.7 4.95.5

shown in the Figure 3.1, the highest increase to the Wages Goodsand Goodsand Nonfinancial Nonfinancial Social
services services Assets Assets transfersand
operating budget was in wages, because of the (operating) (development) (operating) (development) Interest
continuous growing number of tashkeel in security AFMIS data extract 7 March 2012
and education sectors together with the rapid
implementation of Pay and Grading reforms and new
pension regulation. Similarly development spending
was higher this year with consistent growth in
Infrastructure, Agriculture and health sector
expenditures.

3.2 Operating Budget by Economic Category
There are three major economic categories in operating budget namely wages and salaries, goods and services
and minor capital expenditures of the operating nature. In 1390 budget, wages and salaries are around 73 percent
of the total operating budget, followed by expenditures on goods and services that add up to 13.3 percent of the
total operating expenditures and minor capital expenditures representing almost 2 percent in overall operating
budget. Ther are also contingency codes in the operating budget that represent around 10 percent of the total
operating expenditures.
Compensation of Employees
Compensation of Employees also known as Wages and Salaries consist wages and salaries of civil servants,
teacher, soldiers and police and accounts for around 76.3 percent of the operating expenditures. This item was
budgeted at Afs 114.6 billion in 1390 budget whilst Afs 28.5 billion was spent on wages and salaries in Q3 only.
. Spending on Wages and salaries were 28 percent higher than actual spending of 20.6 billion in the third quarter
of 1389.
total spending on wages and salaries till the end of Q3 were Afs 76.5 billion against the target of Afs 85.9 billion.
Comparing this with the YTD expenditure at the same time in 1389, this shows a growth Afs 18.2 billion or 31.2
percent. The gap between budgeted and actual expenditure will narrow by the end of the year when all
recruitment of the expected security personnel and teachers continue in the fourth quarter of the year. Also, social
and other benefits are executed close to target in the last quarter of every fiscal year.
Goods and Services
This category includes travel, communication, contracted services, repairs and maintenance, utilities, and fuel.
This is the second highest spending category for the government in the operating budget. Total operating budget
for goods and services is Afs 28.1 billion while Afs 14.4 billion was spent by the end of third quarter. The figure
3.4 below shows expenditures on goods and services and that the gap between budgeted and actual expenditures
has widen at the start of the 3rd quarter. Actual expenditures have been constantly lower than the target
throughout the year. It reached Afs 14.4 billion against the target of Afs 18.7 billion at the end of the quarter.
Comparing this with the actual spending on goods and service in the previous year, it is higher by 61 percent or
by an amount of Afs 5.5 billion. However still spending on goods and services are below the quarterly target of
Afs 21 billion. It seems that over 90% of the budgeted amount of Afs 28.1 billion will be spent till the end of the
fiscal year as most of the contractors of fuel; utilities, communication etc are paid in the last quarter of the year.
Figure 3.2 - Compensation of employees Figure 3.3 Goods and Services (Operating Budget)
YTD Allocated Budget 28,114
Wages YTD Allocated Budget
114,553
Goods&Services 23,428
25,771
(Afsmillion)
95,461
105,007
Operatingbudget 18,742
21,085
85,915
(Afsmillion)
76,369 16,400
66,823 76,536 14,057 14,416
57,276 67,665
11,714 12,209
47,730 57,584
9,371
38,184 48,046 8,061
Actual expenditure 7,028
6,742
Actual expenditure
28,638 40,160
19,092 4,686 5,624
28,908
4,019
9,546 19,783 2,343 2,092
10,087 AFMIS data extract 7 March 2012
107 677
1,499 - - - AFMIS data extract 7 March 2012

Afs 1 billion higher mainly as a result of the increased
number of retired civil servants.
Subsidies, Grants, Social Transfers
Figure 3.4 Subsidies, grants and social transfers
Budget targets
This category includes pension payments to retired Subsidies, grants
14,604
13,387
civil servants and officers in the police and army,
subsidies to state owned enterprises and capital andsocialtransfers 10,953
12,170
transfers to municipalities. The transfer of social (Afsmillion) 9,736
benefits is directly linked with the implementation of 8,519

7,302 Actual expenditure
Pay and Grading, it means only those who are under
6,085
the pay and grading reforms will be paid higher 4,868 5,050 5,397
4,438
benefits this year. 3,651
2,774
3,398
Operating expenditures on subsidies, grants and social 2,434 2,174
transfers were Afs 5.4 billion at the end 3rd quarter 1,217
0
1,012
0
against the budget target of Afs 14.6 billion. That
implies around 38 percent execution of the allocated
funds for this category. Comparing this with 3rd
quarter of 1389 (Afs 4.4 billion), spending were over
Interest Payments
Interest payments are only a small proportion of the total operating expenditures of the Government and since
Afghanistan is borrow on highly concessional rates as it is under the IMFs poverty reduction program. This is
why the majority of the government debt is in the form of concessional loans with low interest rates and a longer
grace period to finance its development projects. As a result, loans constitutes for a minor amount in the national
budget financing. Spending on interest (excluding the principle repayments) was Afs 39.7 million in 3rd quarter
of 1390 and on an YTD basis spending reached Afs 84.5 million implying an increase of 17 percent compared to
spending on the same category last year which was an Afs 72.2 million.
Acquisition of Non-Financial Assets
Spending on the acquisition of non-financial assets occurs mainly from the development budget. However, there
is also a small amount of expenditures on the acquisition of non-financial assets in the operating budget. During
the 3rd quarter of 1390, operating expenditures on the Acquisition of Non-Financial Assets were Afs 10.5
billion. On the YTD basis expenditure on this category has reached to Afs 21.8 billion, Afs 3.9 billion higher
compared to spending in 1389 or a 22.3 percent increase.
3.3 Operating Budget by ANDS Sector and Ministry
The Afghanistan National Development Strategy (ANDS) is the Government strategy for development to reduce
poverty, accelerate economic growth and improve security and governance. The National Budget is aligned with
ANDS priorities. It has eight sectors which cover all the ministries and budgetary units.
Table 3.2 considers the operating budget expenditures at the same stage of 1388 and 1389 by ANDS sector and
largest operating budget ministries. It also shows whether spending has increased or decreased for the major
economic codes.
Table 3.2 Operating Expenditures by Sector and Largest Ministry (1389 and 1390 YTD)
T ota l Ope ra ting E xpe nditure s Compe nsa tion of Goods a nd Gross Acquisition Othe r
E mploye e s S e rvice s of N on fina ncia l Expe nditure s (1)
a sse ts
In millions of Afgha nis 1389 1390 % Curre nt 1390 1389 1390 1389 1390 1389 1390 1389 1390
Qtr 3 Qtr 3 Cha nge a lloca te d YT D a s Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3 Qtr 3
Actua l P re lim Budge t % of Actua l P re lim Actua l P re lim Actua l P re lim Actua l P re lim
YT D YT D 1389 (2) Budge t YT D YT D YT D YT D YT D YT D YT D YT D
T OT AL 72,392.8 97,543.5 34.7 150,726.1 64.7 58,332.9 76,536.0 8,954.1 14,416.2 599.7 1,109.5 4,506.0 5,481.9
T ota l S e curity 40,618.6 55,335.6 36.2 90,168.7 61.4 37,544.7 50,676.6 2,855.3 4,070.3 218.7 588.7 0.0 -0.0
Ministry of Interior 18,045.4 23,279.1 29.0 37,725.8 61.7 17,247.7 21,644.5 708.9 1,311.2 88.8 323.4 -0.0 -0.0
Ministry of Defence 18,782.8 26,307.2 40.1 44,694.5 58.9 17,730.3 25,116.7 957.7 982.8 94.7 207.7 0.0 -0.0
General Directorate of National Security 2,036.8 3,395.9 66.7 4,132.3 82.2 1,558.5 2,475.6 478.3 892.5 0.0 27.8 0.0 0.0
Ministry of Foreign Affairs 1,097.4 1,645.2 49.9 2,607.1 63.1 504.5 865.7 580.1 752.2 12.9 27.3 0.0 -0.0
Other Ministries 656.2 708.2 7.9 1,008.9 70.2 503.6 574.1 130.2 131.7 22.4 2.5 0.0 0.0
Total Governance, Rule of Law and Human Rights 7,034.8 7,992.3 13.6 11,677.3 68.4 4,247.6 5,240.6 1,927.1 2,351.9 150.4 208.8 709.8 190.9
Legal Training Center 3.0 6.9 132.2 6.9 100.0 2.1 5.0 0.9 1.9 0.0 0.0 -0.0 -0.0
Presidents Office 918.6 1,085.0 18.1 1,686.6 64.3 606.0 709.0 291.6 345.0 21.0 31.0 -0.0 0.0
Administrative Affairs 1,295.1 1,062.9 -17.9 1,442.6 73.7 234.3 378.6 327.6 407.8 23.6 90.3 709.6 186.1
Supreme Court 743.4 896.3 20.6 1,214.9 100.0 2.1 5.0 0.9 1.9 0.0 0.0 -0.0 -0.0
Ministry of Justice 1,196.6 1,407.6 17.6 1,630.9 86.3 685.6 836.5 510.8 570.8 0.0 0.0 0.2 0.1
Other Ministries 2,878.0 3,533.7 -156.9 5,695.6 -355.8 2,717.5 3,306.5 795.3 1,024.5 105.7 87.4 0.0 4.7
Total Infrastructure and Natural Resources 1,727.7 2,913.0 68.6 5,327.5 54.7 1,029.8 1,270.8 621.4 1,431.4 76.5 210.8 -0.0 -0.0
Total Education 14,104.5 17,440.8 23.7 26,293.8 66.3 12,324.6 15,461.4 1,718.3 1,948.7 61.5 30.7 -0.0 -0.0
Ministry of Education 12,160.5 15,289.4 25.7 23,167.9 66.0 11,169.6 14,206.9 958.6 1,063.9 32.2 18.6 -0.0 -0.0
Ministry of Higher Education 1,301.7 1,474.4 13.3 2,101.7 70.2 796.3 867.2 494.1 603.5 11.4 3.7 -0.0 -0.0
Other Ministries 642.3 677.1 -15.3 1,024.2 -69.8 358.7 387.3 265.6 281.4 17.9 8.5 0.0 0.0
Total Health 1,311.4 1,417.8 8.1 2,712.7 52.3 890.6 1,160.8 410.6 255.0 10.1 2.1 0.0 0.0
Ministry of Public Health 1,311.4 1,417.8 8.1 2,712.7 52.3 890.6 1,160.8 410.6 255.0 10.1 2.1 0.0 0.0
Total Agriculture and Rural Development 1,123.7 1,263.0 12.4 2,797.6 45.1 828.2 961.3 278.7 238.8 16.8 7.6 -0.0 55.2
Ministry of Agriculture 736.4 848.0 15.2 2,123.9 39.9 588.9 681.9 143.1 108.8 4.4 2.1 -0.0 55.2
Other Ministries 387.3 414.9 -2.8 673.7 5.2 239.3 279.4 135.7 129.9 12.4 5.6 0.0 0.0
Total Social Protection 4,577.6 6,193.4 35.3 9,131.4 67.8 610.1 735.8 374.6 446.7 17.6 15.8 3,575.3 4,995.1
Ministry of Martyrs, Disabled and Social Affairs 4,083.0 5,615.8 37.5 8,246.8 68.1 318.7 384.7 184.7 232.0 4.3 4.0 3,575.3 4,995.1
Other Minisitries 494.6 577.6 -2.2 884.6 -0.3 291.4 351.1 189.9 214.7 13.2 11.8 0.0 0.0
Total Economic Gov. and Private Sector Devel't 1,894.5 4,987.6 163.3 7,964.1 62.6 857.3 1,024.1 768.1 3,673.3 48.2 44.9 220.9 245.3
Ministry of Finance 1,457.4 4,526.5 210.6 5,575.0 81.2 585.5 707.6 628.8 3,537.2 22.2 36.3 220.9 245.3
Other Minisitries 437.1 461.1 -47.3 2,389.1 -18.6 271.8 316.4 139.3 136.1 26.0 8.6 0.0 0.0
(1) Interest, and Subsidies and Transfers
(2) For individual Ministries (not the total budget), allocated operating Budget may not equal the approved budget, as funds are allocated from contingency reserve during the year. Allocated budget for the
development budget is the same as the latest approved budget. Total current allocated budget is the approved budget.
Once again the Security sector remains the highest spending sector, this year the operating budget for this sector
was Afs 90.2 billion compared to the total of Afs 150.7 billion, this is almost 60 percent of the total budget.
Operating expenditure has reached to Afs 55.3 billion at the end of 3rd quarter 1390. This is 61.4 percent of the
allocated budget to this sector. These spending are around 36.2 percent higher compare to actual spending in
1389 of Afs 40.6 billion. The largest part of the operating expenditures (Afs 50.7 billion) has been spent on
wages and salaries of the security personnel that represent around 92 percent of the total whilst the remaining 8
percent was spent on goods and services and other minor expenditure categories. The reason for the overall
increase in the operating budget of the security sector was because of the growth in the number of soldiers and
police. Analyzing expenditures by ministry, the defence and interior ministries are allocated the largest share of
the budget. Till the end of Q3, 1390, Afs 23.3 billion and Afs 25.3 billion were spent on the wages and salaries of
ANP and ANA respectively. While, these spending were Afs 18 billion and Afs 18.7 billion for ANP and ANA
in 1389 respectively. Ministries of interior and defence spend nearly 42 and 45 percent of the total security sector
expenditures and the remaining 13 percent is allocated to other ministries in this sector.
The second highest spending in the operating budget is the education sector. Total budget for this sector in 1390
was Afs 26.3 billion. This is 17.5 percent of the total operating budget in 1390. Spending in the education sector
was Afs 17.5 billion till the end of 3rd quarter of 1390 or 23.7 percent higher than spending for the same period
in 1389. Spending in the Ministry of Education is higher compared to other ministries in this sector. The Ministry
of Educations spending was Afs 15.3 billion in 1390, or 25.7 percent higher than last year. The main reason
behind this growth is the rapid implementation of pay and grading reforms and the recruitment of 10,000 new
teachers each year. Execution is proceeding well, almost 66.2 percent of the budgeted funds were spent and the
remaining is expected to be spent by the end of year. It should be noted that over half of the total teachers
positions are reformed and currently getting their pay and grading salaries.
Governance, Rule of Law and Human Rights are the third highest spending sector, YTD operating budget was
Afs 8 billion in 1390; this is 68 percent of the allocated budget and 13.6 percent higher than last year actual
spending of Afs 7.1 billion. The execution rate here is fair and it is expected that all the allocated amounts will be
spent by end of the fiscal year.
From the remaining sectors, spending in the social protection sector was Afs 6.2 billion, which is around 68
percent of the allocated budget of this sector. This is 35.3 percent higher than 1389 spending at the same time.
Similarly, economic governance, infrastructure and natural resources, agriculture and health sectors spent Afs 4.9
billion, Afs 2.9 billion, Afs 1.3 billion and Afs 1.4 Billion respectively.
Considering past experience, a higher execution rate is usually observed in the operating budget, given the large
component of salaries and wages in the operating budget.
3.4 Development Budget by Economic Category
Total development budget for fiscal year 1390 was Afs 74 billion which was later increased to Afs 101.2 billion
(11.7% of GDP),which includes the supplementary projects from 1389, consisting of Afs 24.2 billion
discretionary and Afs 74.3 billion non-discretionary projects. The total revenue to finance the development
expenditures is Afs 83.3 billion, including Afs 13.2 from the domestic revenues (including Aynak) and Afs 69.9
billion donor grants to the development budget.
Total development budget expenditures were Afs 15.2 billion or 15% of the total development budget for the year
in the third quarter. During third quarter of 1390, development expenditures raised by 30.6% or about Afs 3.6
billion compared to the Afs 11.7 billion spent in during the same period of the last year. The YTD development
expenditures were Afs 32.1 billion in third quarter 1390, around 13.2% higher compared to the development
expenditures during third quarter of 1389. Meanwhile, the development budget execution rate in this period was
only 31.7% or 3.7% of projected GDP for the fiscal year 1390. The relatively higher development budget
execution is inlign with the governments commitment to increase the absolute amount of spending each year by
10 percent as stated in the PFM Roadmap.
Acquisition of Non-financial Assets

The acquisition of non-financial assets is usually known as Capital Expenditure. It typically includes the
purchase of land, the construction or refurbishment of buildings and purchases of machinery and equipment
valued above Afs 50,000. The current allocated budget available for this category in 1389 is Afs 9.7 billion.
During third quarter 1390 Afs 9.7 billion spent on the acquisition of capital goods. The YTD budget for this
category reflects 20.2 percent of total development budget for the year, spending on this category raised by Afs
2.5 billion or 29% higher compared to third quarter 1389. In this period of time, most spending was on land and
building, machinery and equipments and capital advance payment.
Figure 3.5 Goods and services, Afs millions Figure 3.6 - Acquisition of non-financial assets by quarter,
YTD Alloacted Budget Afs millions, 1388- 1390
Goods&Services 36,673
40,007
LandandBuildings MachineryandEquipment
12,000
Developmentbudget 30,005
33,339
CapitalAdvancePayments
10,000
(Afsmillion) 26,671 8,000

23,337
20,004 Actual expenditure 6,000
16,670
13,336
4,000
11,611
10,002
9,455
7,775 2,000
6,668 6,094
4,804
3,334 3,247
1,369
0
- 431 AFMIS data extract 7 March 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
1388 1389 1390
Goods and services

Contractors are paid in the third and fourth quarter
Development budget expenditures on goods and
for the services rendered in the 1st half of the year.
services, includes fees of consulting firms,
construction of equipments, engineering and design Figure 3.7 - Acquisition of non-financial assets by quarter,
Afs millions, 1389 - 1390
services, services of non-government organizations, YTD Alloacted Budget
tools and materials for project implementation, Grossacquistionofnon 60,738
project management services and project financial assets

55,676
50,615
monitoring and evaluation.
(developmentbudget) 45,553
40,492
(Afsmillion)
Development budget spending on Goods and 35,430
30,369 Actual expenditure
Services during the third quarter of 1390 was Afs
25,307
5.5 billion. The YTD expenditures on goods and 20,246 20,664
services in the development budget were Afs 11.6 15,184
14,082
16,880
1389
billion implying an increase of 8.1% compared to 10,123
6,670
10,751
Expenditure
5,061
third quarter of 1389. However, it should be 2,210 3,746 4,577
5 AFMIS data extract 7 March 2012
recognized that this category usually has relatively
higher spending in the end of the year as most of the
3.5 Development Budget by ANDS Sector and Ministry
Table 3.3 considers the operating budget expenditures at the same stage of 1389 and 1390 by ANDS sector and
largest development budget ministries.

Table 3.3 Development Expenditures by Sector and largest Minsitry (1389 and 1390 YTD)
1389 1389 1389 1390 1390 1390 1390 1390 1390 Compa rison to
Approve d Qtr 3 YT D. Approve d Qtr 3 YT D . U nspe nt % of 1389 Y T D
In millions of Afgha nis
Budge t Actua l a s % of Budge t P re lim a s % of Budge t T ota l
YT D Budge t YT D Budge t U nspe nt Cha nge % Incre a se
T OT AL 111,900.2 29,592.4 26.4 101,243.6 33,388.5 33.0 67,855.1 100.0 12.8 93.1
Total Infrastructure and Natural Resources 48,067.6 13,492.5 28.1 44,435.4 11,916.0 26.8 32,519.4 47.9 -1,576.6 -11.7
Ministry of Public Works 23,514.1 8,320.9 35.4 18,076.4 4,930.5 27.3 13,145.8 19.4 -3,390.4 -40.7
Ministry of Transport and Aviation 1,486.3 373.0 25.1 1,456.4 503.8 34.6 952.6 1.4 130.7 35.0
Ministry of Energy and Water 14,365.7 2,931.5 20.4 12,394.5 3,882.2 31.3 8,512.3 12.5 950.7 32.4
Water Supply and Canalization Corporation 0.0 0.0 N/A 901.9 26.2 2.9 875.7 1.3 26.2 N/A
Ministry of Communication 1,679.6 255.4 15.2 1,817.1 1,051.2 57.9 765.9 1.1 795.8 311.6
Geodesy and Cartography Office 28.5 3.9 13.7 164.7 0.0 0.0 164.7 0.2 -3.9 -100.0
Other Ministries 6,993.4 1,607.8 23.0 9,624.4 1,522.1 15.8 8,102.3 11.9 -85.7 -250.0
Total Agriculture and Rural Development 27,329.3 5,226.4 19.1 22,963.7 10,678.3 46.5 12,285.4 18.1 5,451.9 104.3
Ministry of Agriculture 5,768.3 1,155.9 20.0 4,224.0 1,835.0 43.4 2,389.0 3.5 679.2 58.8
Ministry of Rural Rehabilitation and Development 21,139.0 3,991.2 18.9 18,500.1 8,799.9 47.6 9,700.1 14.3 4,808.8 120.5
Other Ministries 422.0 79.4 18.8 239.6 43.3 18.1 196.3 0.3 -36.1 -74.9
Total Education 12,327.3 4,226.6 34.3 11,757.1 3,084.8 26.2 8,672.2 12.8 -1,141.8 -27.0
Ministry of Education 9,986.8 3,600.4 36.1 9,269.9 2,501.2 27.0 6,768.6 10.0 -1,099.1 -30.5
Other Ministries 2,340.4 626.2 26.8 2,487.2 583.6 23.5 1,903.6 2.8 -42.6 3.5
Total Economic Gov. and Private Sector Devel't 5,678.9 1,324.6 23.3 5,338.3 1,816.0 34.0 3,522.2 5.2 491.4 37.1
Ministry of Finance 3,997.0 1,056.9 26.4 3,352.5 1,468.7 43.8 1,883.8 2.8 411.8 39.0
Other Minisitries 1,681.8 267.7 15.9 1,985.8 347.4 17.5 1,638.4 2.4 79.7 -1.9
Total Health 7,316.0 2,702.7 36.9 7,741.1 3,028.6 39.1 4,712.5 6.9 325.9 12.1
Ministry of Public Health 7,316.0 2,702.7 36.9 7,741.1 3,028.6 39.1 4,712.5 6.9 325.9 12.1
Total Governance, Rule of Law and Human Rights 4,233.7 2,093.1 49.4 3,419.2 2,348.4 68.7 1,070.9 1.6 255.2 12.2
Independent Directorate of Local Governance 1,476.6 3.0 0.2 23.5 6.9 29.2 16.6 0.0 3.9 132.2
Other Minisitries 2,757.1 2,090.2 75.8 3,395.7 2,341.5 69.0 1,054.3 1.6 251.3 -120.0
Total Social Protection 1,110.2 264.6 23.8 1,025.8 378.5 36.9 647.4 1.0 113.9 43.0
Total Security 993.3 261.8 26.4 1,038.6 137.9 13.3 900.7 1.3 -123.9 -47.3
Total Unclassified 4,843.9 0.0 0.0 3,524.4 0.0 0.0 3,524.4 5.2 0.0 N/A
Infrastructure and Natural Resources is the largest sector in development budget compared to other sectors.
Total budget for this sector has been allocated Afs 44.4 billion or 44% of the total development budget in 1390.
The YTD development budget expenditures were Afs 11.7 billion or 26.4% of the total allocated budget. The
development expenditures in the sector during third quarter of the year account for 1.6% of annual projected
GDP. These expenditures are almost 13.0 % declined compared to the YTD development expenditure of Afs
13.5 billion in the sector during the third quarter of 1389. Expenditures in this sector included the design, survey
and construction of highways, electric power generators, roads, communication other related projects. Many of
the largest ministries in the development budget are in this sector. These include the following Ministries:
Total development budget of the Ministry of Public Works is Afs 18.1 billion or 17.9% of the total
development budget in 1390. The total YTD development expenditures were Afs 4.9 billion. The
execution rate of this ministry was 26.5%. The YTD development expenditures during third quarter 1390
were almost Afs 3.5 billion less than compared to the same period of 1389.
Ministry of Energy & Water has a total development budget of Afs 12.4 billion. It accounts for 12.2%
of the total development budget in 1390. YTD development expenditures in this ministry were Afs 3.9
billion, which is 31.3% of its annual budget or Afs 950.6 million higher compared to the same period in
1389
YTD development budget expenditures in the Ministry of Information and Communication
Technology were notable, this rose up to Afs 1.1 billion in 1390 compared to Afs 255.4 million during
the same period last year which accounts almost 73% of its annual budget.

The Agriculture & Rural Development sector is the second largest sector in the development budget and
accounts for almost 23% of the budget. The total allocated budget for the sector is Afs 23 billion. The YTD
development expenditures in the sector were Afs 10.7 billon or 46.5% of the allocated budget which is more than
double compared to the YTD expenditures during third quarter 1389.
The Ministry of Rural Rehabilitation and Development is the third largest ministry in the development budget
for 1390. Its total development budget is Afs 18.5 billion or 18% of the total development budget for the year.
The total YTD development expenditures in the ministry were Afs 8.8 billion or 25% of the allocated budget for
the year. During this period of time MRRD development budget expenditure was notably higher compared to the
same period in 1389 (Afs 4.0 Billion).
The YTD development expenditures in the Ministry of Agriculture were Afs 1.8 billion or 43.4% of its
annual budget, while YTD spending at the same period in 1389 was only Afs 1.2 billion which is Afs 679
million lower compared to 1391 spending.
The Education Sector accounts for 11.6% of the total development budget. The total YTD development
expenditures in the sector were only Afs 3.1 billion, with an execution rate of only 26.3%. Most of these
expenditures were made in the Ministry of Education on construction of schools, building local education offices
in provinces, technical teachings, capacity development of teachers, building universities in provinces, and
purchasing necessary equipments etc. The YTD development expenditures are also 37% less than Afs 4.2 billion
spent in the same period last year.
The Ministry of Public Health accounts for nearly 8% of the total development budget (or 1% of GDP) in 1390
with the development budget of Afs 7.7 billion. During third quarter 1390 development expenditures in health
sector was Afs 3.0 billion, which spent almost 39% of its allocated budget for the year and almost 11% higher
compared to Afs 2.7 billion in the same time in 1389 which shows a positive trend in the development budget
execution rate.
The Governance Rule of Law & Human Rights sector has spent nearly 69% of its allocated budget for the
year. Total YTD development expenditures in this sector were Afs 2.4 billion which shows an increase of 12.2%
compared to YTD expenditures at the same period in 1389 (Afs 2.1 billion).

4 FINANCING OF THE CORE BUDGET
4.1 Public Sector Borrowing Requirement

The public sector borrowing requirement is the integrated budget balance. However, it also adds any revenues
the sale of non-financial assets to obtain a true picture of the budget financing requirement. In comparison, the
core budget balance presented in chapter one only considers the gross acquisition of non-financial assets. Unless
there is major asset sale, the public sector financing requirement will be very similar to the core budget balance
(including grants).
Referring to below Figure 4.1 the government deficit during third quarter 1390 was Afs 6.1 billion while this was
only Afs 4.9 billion in second quarter 1390, the main reason for this deficit was due to higher operational
expenditures and net acquisition of non financial assets in third quarter 1390. The YTD balance has a net surplus
of Afs 6.2 billion, compared to a net surplus of Afs 12.3 billion during second quarter 1390.
Figure 4.2 - Balance of Treasury Single Account, Afs

Figure 4.1 Public Sector Borrowing Requirement by million at end of quarter
quarter, Afs millions
20,000
45,000
Quarter Netprovincialaccounts HeldinUSdollars
Year to date 40,000 HeldinAfghanis Totalliabilities
15,000
35,000
10,000 30,000
5,000 25,000
20,000
0
Q1 1388 Q2 Q3 Q4 Q1 1389 Q2 Q3 Q4 Q1 1390 Q2 Q3
15,000
-5,000
10,000
-10,000 5,000
-15,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
-20,000 1388 1389 1390
4.2 Treasury Single Account

Figure 4.2 represents the changes in the Treasury Single Account between third quarter 1390 and second
quarter 1390. It is likely that balances increase if there is a surplus, and decrease if there is a deficit.
However, the liabilities are also vital in determining movements in the TSA, given some of the funds in the
TSA might be used to pay off outstanding loans and arrears.
During third quarter 1390, the TSA stood at Afs 30.7 billion compared to Afs 36.6 billion in the second
quarter 1390, which shows a short fall by19.2% over the last quarter. However, the liabilities has raised up
to Afs 28.1 billion compared to Afs 25.7 over the same period in the past quarter, this was mainly due to
increase public sector deficit.

5 A closer look at A Glance at FY 1391 (2012/13) Core National Budget*
Background
National Budget is the tool for implementation of Government priorities. In national budget objectives
within the development strategy of the Government with the resources for achieving them are identified.
The vision for achieving high level is already set in the Poverty Reduction Strategy (PRS) so called
Afghanistan National Development strategy (ANDS) and National Priority Programs (NPPs).
Over the past few years, Ministry of Finance of Islamic Republic of Afghanistan has made tremendous
progress in strengthening the budget preparation, execution, and reporting processes. These processes can
now be compared with any comparable countries in the region and in the world. Same like other
constituencies, particularly in Afghanistan, the budget is prepared based on the resources not the actual
needs as there are very limited financing options available with the Government.
In the preparation of FY 1391 budget, the fundamental principles of fiscal sustainability, fair and inclusive
allocation of resources have been respected. FY 1391 is a transition year in the sense that the change in
fiscal year1 is going to be implemented and this year is going to only for 9 months. The budget for
budgetary entities has been adjusted accordingly.
Domestic revenues and sale of assets

There has been a dramatic increase in domestic revenue collection in the past 3 years, increasing from US$
800 in FY 1387 million to close to US$ 2 billion by end of FY 1390. Domestic revenues for FY 1391 are
projected to reach to about U$ 1.76 billion2 which shows an increase of about 25% over the same period of
FY 1390. The encouraging performance of domestic revenue collection is attributed to strong economic
growth, increase in trade, and increase in efficiency of tax collection triggered by implementation of vast
area of reforms in revenue and custom offices.
* The figures in this article are based on the executive budget proposal to the Parliament and are subject to change
1
(Solaryear,March21stMarch20th,inAfghanistanwasfiscalyeartoo.NowthefiscalyearwillchangetoDecember22December21)
2
(ExchangerateisAfs50/1US$)

Operating Budget
Operating budget expenditures were more or less
according the ceilings provided during the budget
preparation process. FY 1391 operating budget is going
to be around Afs 134 billion. The major drivers of
increase in operating budget are implementation of civil
service reform (pay and grading scheme), increase in
the personnel (Tashkeel) in most of the budgetary
entities and some adjustments in the budget to
accommodate for movement in macroeconomic
variables (inflation etc.)
Development Budget
Over the past couple of years, the Budget Committee3 has been successful to some extent to make the
development budget look realistic. During this time, the
significant efforts and a lot of progress has been made to
strengthen the link between budget and development
strategy. A lot more in this area is still required.
Total development spending for FY 1391 is about US$ 2.2
billion. The major share of development budget goes to
Infrastructure sector followed by Agriculture, Education,
Health, Economic Governance, Good Governance,
Security, and Social Protection, respectively.
3
(ThebudgetcommitteeisChairedbyMinisterofFinanceandcomprisesmemberfromMinistryofEconomy,MinistryofForeignAffairs,andOfficeof
AdministrativeAffairs)
Financing of Core Budget
Significant share of development budget and very large portion of operating budget is financed through
grants. For FY 1391, on top of US$ 1.76 billion
dollars in domestic revenues, the Government is
expected to receive US$ 2.7 billion dollars in grants.
Other financing includes US$ 54 million from sale of
copper mine, US$ 88 million from treasury balances,
and US$ 73 million in project loans. Out of total core
budget of US$ 4.89 billion, FY 1391 budget is
estimated to have US$ 250 million unfunded portion
(deficit) of discretionary development budget.

Risks, challenges and uncertainties

Despite a strong revenue performance in the past few years, the fiscal situation remains uncertain due to
emerging fiscal pressures arising from the wider civil servant reform programs. These pressures are from
the higher growth in the size of the security forces (ANA and ANP), wage growth from the implementation
of Pay and grading reforms, higher benefits to retirees by implementation of new pension reform and the
likes of it. Only by obtaining higher-than-expected revenue collections can ensure fiscal sustainability in
the longer-term which probably is a very unlikely scenario. Unpredictability of longer-term donor grants,
the costs associated to transition process and operations and maintenance of existing stock of assets add
more to the uncertainty surrounding the public finance management of the Government.

6 Tables
Table 6.1 - Core Budget Revenues
1389 1389 1390 1390 1390 1390 1390 Compa rison to Y T D T a rge t Annua l %
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 1389 YT D 1390 T a rge t - T a rge t (2) Annua l
Code I n millions of Afghanis
Actua l Actua l P re lim Pre lim P re lim Pre lim Qtr 3 Actua l T a rge t
Qtr YT D Qtr Qtr Qtr YT D Cha nge % (+/ -) YT D % (+/ -)
COR E BU D GE T
1 R E V EN U ES including gra nts (1) 40,146.6 116,664.6 45,401.7 42,452.2 48,973.2 136,827.1 20,162.5 17.3
1-19 R E V EN U ES e xcluding gra nts 20,523.2 57,692.6 23,289.9 23,830.8 24,164.2 71,284.8 13,592.2 23.6 65,564.7 8.7 93,663.8 76.1
D OME ST IC R EV E N U E S (2) (3) 20,523.2 57,692.6 23,289.9 23,830.8 24,164.2 71,284.8 13,592.2 23.6 65,564.7 8.7 93,663.8 76.1
11 T a x R e ve nue s 9,622.6 27,555.7 9,346.8 10,455.7 11,891.5 31,694.0 4,138.3 15.0 32,336.1 -2.0 46,194.5 68.6
111 Fixed Taxes 2,359.2 6,727.8 2,280.4 2,483.3 2,533.9 7,297.7 569.9 8.5 8,620.2 -15.3 12,314.6 59.3
112 Income Taxes 2,400.6 7,159.1 2,842.7 2,541.1 3,460.0 8,843.7 1,684.6 23.5 8,314.8 6.4 11,878.2 74.5
113 Property Taxes 51.7 163.2 102.9 85.7 80.9 269.6 106.4 65.2 230.9 16.8 329.8 81.7
114 Sales Taxes 4,251.5 11,590.5 3,597.2 4,561.9 4,849.8 13,008.9 1,418.4 12.2 13,297.2 -2.2 18,996.0 68.5
116 Other Taxes 389.2 1,499.0 388.3 628.8 853.9 1,870.9 371.9 24.8 1,373.4 36.2 1,962.0 95.4
117 Tax Penalties and Fines 170.4 416.1 135.3 154.9 113.0 403.2 -12.8 -3.1 499.6 -19.3 713.8 56.5
12 Customs D uty, Import T a xe s 7,311.2 20,506.5 7,810.1 7,939.7 7,769.5 23,519.2 3,012.7 14.7 22,779.8 3.2 32,542.6 72.3
13 N on T a x R e ve nue 2,917.7 8,084.4 5,701.9 4,286.8 3,541.6 13,530.3 5,445.9 67.4 8,501.0 59.2 12,144.3 111.4
131 Income from Capital Property 71.1 223.7 2,480.4 68.0 115.3 2,663.7 2,440.0 1,090.8 259.7 925.9 370.9 718.1
132 Sales of Goods and Services 1,061.7 3,028.9 1,255.6 1,151.7 1,226.5 3,633.7 604.8 20.0 2,905.3 25.1 4,150.4 87.6
133 Administrative Fees 1,688.7 4,596.5 1,721.4 2,845.8 2,012.3 6,579.5 1,983.0 43.1 5,058.6 30.1 7,226.6 91.0
134 Royalties 6.8 23.3 41.7 67.1 25.2 134.0 110.7 474.9 86.4 55.1 123.4 108.6
135 Non Tax Fines and Penalties 89.4 211.9 190.5 126.0 121.1 437.6 225.7 106.5 191.1 129.0 273.0 160.3
136 Extractive Industry 0.0 0.0 12.3 28.2 41.2 81.7 81.7 N/A 818.5 -90.0 1,169.3 7.0
14 Misce lla ne ous R e ve nue 252.9 416.6 -86.9 495.9 208.2 617.2 200.6 48.2 818.5 -24.6 1,169.3 52.8
17 S ocia l Contributions 418.7 1,129.4 518.0 652.7 753.4 1,924.1 794.6 70.4 1,129.2 70.4 1,613.2 119.3
GR AN T S (1) 19,623.4 58,971.9 22,111.9 18,621.4 24,809.0 65,542.3 6,570.3 11.1

191 Foreign Governments 14,445.8 42,683.3 18,035.6 14,296.6 16,847.5 49,179.6 6,496.4 15.2
192 International Organisation 5,177.6 15,972.8 4,076.3 4,182.1 7,906.6 16,165.0 192.2 1.2
193 Other Government Units 0.0 315.9 0.0 142.8 54.9 197.7 -118.3 -37.4
T OT AL OP ER AT IN G BU D GE T R E V EN U E 33,257.8 96,988.7 40,953.7 37,460.9 39,740.6 118,155.3 21,166.5 21.8 160,374.8 73.7
Domestic Revenues 20,523.2 57,692.6 23,289.9 23,830.8 24,164.2 71,284.8 13,592.2 23.6 65,564.7 8.7 93,663.8 76.1
External Grant Support 12,734.6 39,296.1 17,663.8 13,630.2 15,576.5 46,870.5 7,574.4 19.3 66,710.9 70.3
1. Actual figures are not comparable to the development/ integrated budget grants or balances shown in budget documentation, as grants/ balance in budget documentation also includes loans. Loans are shown as a financing item in above table.
2. Revenues exclude proceeds from the sale of fixed assets (150), and loans (18). These items are included under financing.
3. In the published budget document, Afs 13.2 billion in domestic revenues are allocated to the development budget in 1390. In order to ensure comparability with actual, all domestic revenues shown under the development budget in the published
budget document have been re-allocated to the operating budget in the above table.

Table 6.2 - Core Budget Domestic Revenues by Province
1389 1389 1390 1390 1390 1390 1390 Compa rison to YT D T a rge t Annua l %
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 1389 YT D 1390 T a rge t - T a rge t Annua l
Code In millions of Afgha nis
Actua l Actual Pre lim Prelim Pre lim Pre lim Qtr 3 Actual T a rge t
Qtr YT D Qtr Qtr Qtr YT D Cha nge % (+/-) YT D % (+/-)
1-19 REVENUES e xcluding grants 20,523.2 57,692.6 23,289.9 23,830.8 25,072.5 72,193.1 14,500.5 25.1 65,564.7 10.1 93,663.8 77.1
01 Kabul 424.4 1,237.5 417.2 596.7 395.4 1,409.3 171.8 13.9 4,998.8 -71.8 7,141.1 19.7
02 Kapisa 12.6 32.4 10.0 32.1 40.8 82.9 50.5 156.1 41.3 100.7 59.0 140.5
03 Parwan 29.1 63.7 15.6 42.9 74.2 132.7 69.1 108.4 91.4 45.3 130.5 101.7
04 Wardak 14.1 39.9 24.3 28.8 41.8 94.9 55.0 137.8 47.7 98.8 68.2 139.1
05 Logar 11.6 36.4 12.1 26.3 55.7 94.1 57.7 158.6 51.0 84.5 72.9 129.1
06 Nangarhar 2,791.2 7,995.7 2,795.6 2,391.7 2,446.0 7,633.3 -362.4 -4.5 10,215.8 -25.3 14,593.9 52.3
07 Laghman 18.3 52.3 22.6 40.3 51.7 114.6 62.3 119.1 64.1 78.8 91.6 125.2
08 Pangsher 5.5 18.0 7.6 23.1 28.4 59.1 41.0 227.8 23.3 153.8 33.3 177.6
09 Baghlan 37.5 93.4 28.5 56.3 103.8 188.6 95.2 101.9 110.2 71.2 157.4 119.8
10 Bamyan 16.6 35.6 6.8 21.0 31.7 59.5 23.9 67.2 39.1 52.2 55.9 106.5
11 Ghazni 27.0 97.8 35.5 63.6 55.0 154.1 56.2 57.5 132.1 16.7 188.7 81.7
12 Paktika 9.2 39.6 13.2 25.7 35.9 74.8 35.2 88.9 63.6 17.6 90.8 82.3
13 Paktiya 79.4 161.6 79.4 103.9 145.9 329.2 167.5 103.6 155.4 111.9 222.0 148.3
14 Khost 193.6 428.4 306.2 336.3 532.3 1,174.9 746.5 174.2 507.3 131.6 724.7 162.1
15 Kunar 15.6 37.8 17.7 611.1 78.2 707.0 669.2 1,770.7 48.1 1,369.8 68.7 1,028.8
16 Nuristan 5.2 11.4 0.0 4.6 9.9 14.6 3.3 28.7 21.8 -32.9 31.1 47.0
17 Badakhshan 29.8 65.9 13.9 59.4 98.5 171.8 105.8 160.5 86.4 98.9 123.4 139.2
18 Takhar 31.9 76.4 27.2 91.5 124.2 242.8 166.4 217.7 103.1 135.5 147.3 164.9
19 Kunduz 225.0 598.1 367.8 374.9 472.1 1,214.8 616.7 103.1 755.7 60.7 1,079.6 112.5
20 Samangan 20.8 49.9 16.1 26.4 24.1 66.6 16.7 33.5 50.0 33.1 71.5 93.2
21 Balkh 2,310.8 7,216.3 2,273.0 2,302.5 2,295.1 6,870.6 -345.6 -4.8 9,392.3 -26.8 13,417.5 51.2
22 Saripul 9.3 25.4 5.8 20.2 16.6 42.5 17.2 67.8 36.2 17.5 51.7 82.2
23 Ghor 15.9 37.3 8.9 26.1 38.7 73.6 36.4 97.6 36.5 101.7 52.1 141.2
24 Dikondy 7.8 18.5 2.7 10.0 16.5 29.2 10.7 57.7 23.4 24.4 33.5 87.1
25 Uruzgan 7.2 15.1 4.7 12.2 36.7 53.6 38.5 256.0 17.1 213.0 24.5 219.1
26 Zabul 8.7 20.5 8.5 37.9 117.7 164.1 143.6 701.9 22.0 646.9 31.4 522.8
27 Kandahar 815.8 2,532.4 729.8 918.9 1,189.1 2,837.7 305.3 12.1 2,912.3 -2.6 4,160.5 68.2
28 Jawzjan 37.9 82.6 37.2 40.0 50.8 128.1 45.5 55.0 89.4 43.2 127.8 100.3
29 Faryab 356.5 1,072.7 368.9 555.2 484.7 1,408.8 336.1 31.3 1,190.8 18.3 1,701.1 82.8
30 Helmand 80.7 214.5 64.5 183.2 315.8 563.5 349.0 162.7 123.0 358.1 175.7 320.7
31 Badghis 11.2 27.6 6.9 20.1 18.7 45.7 18.1 65.5 28.7 59.1 41.1 111.4
32 Herat 3,925.3 10,883.0 5,031.4 5,076.1 4,194.3 14,301.9 3,418.9 31.4 10,933.5 30.8 15,619.3 91.6
33 Farah 145.3 337.3 164.4 237.9 241.4 643.7 306.5 90.9 106.1 506.5 151.6 424.5
34 Nimroz 1,094.6 2,817.0 859.2 933.5 948.5 2,741.2 -75.8 -2.7 2,759.2 -0.6 3,941.6 69.5
90 Central Ministries 7,698.0 21,220.7 9,506.3 8,500.6 10,262.2 28,269.2 7,048.4 33.2 20,288.0 39.3 28,982.9 97.5
95 Offshore Payments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A 0.0 N/A 0.0 N/A

Table 6.3a - Core Budget Expenditures
1389 1389 1390 1390 1390 Compa rison to Budge t 1390
Qtr 3 Qtr 3 Qtr 2 Qtr 3 Qtr 3 Budge t Curre nt % Compa rison to
Core In millions of Afgha nis
Actua l Actua l P re lim P re lim P re lim or MY R Alloca te d Alloca te d %
Qtr YT D Qtr Qtr YT D Ce iling Budge t (4) Budge t Cha nge Incre a se
2 T OT AL GR OS S E XP E N D IT U R E S 37,785.4 100,731.5 47,392.7 54,213.5 129,818.5 251,970 251,970 51.5 29,087.0 28.9
Ope ra ting Budge t 26,118.3 72,392.8 35,662.1 38,784.5 97,543.5 150,726 150,726 64.7 25,150.7 34.7
D e ve lopme nt Budge t 11,667.0 28,338.7 11,730.6 15,429.0 32,274.9 101,244 101,244 31.9 3,936.2 13.9
Discretionary Budget 2,805.2 5,311.5 2,885.6 4,062.3 8,195.8 26,504 26,504 30.9 2,884.3 54.3
Non-discretionary Budget 8,861.9 23,027.2 8,845.0 11,366.7 24,079.1 74,740 74,740 32.2 1,051.9 4.6
2* T OT AL N E T E XP E N D IT U R E S 37,771.4 100,636.3 47,383.8 54,203.7 129,777.0 29,140.7 29.0
2-25 R E CU R R E N T E XP E N D IT U R E S 30,262.9 82,926.2 40,031.8 43,719.3 108,044.7 N/A 197,628 54.7 25,118.5 30.3
21 Compe nsa tion of E mploye e s 20,623.1 58,332.9 28,262.3 28,490.2 76,536.0 109,884 114,553 66.8 18,203.0 31.2
of which ope ra ting budge t 20,623.1 58,332.9 28,262.3 28,490.2 76,536.0 109,884 114,553 66.8 18,203.0 31.2
211-3 Wages and Salaries 20,490.1 57,897.8 28,038.0 28,274.9 75,959.6 18,061.8 31.2
214-5 Social Benefits 133.0 435.1 224.2 215.4 576.4 141.3 32.5
22 U se of Goods a nd S e rvice s 8,121.3 19,670.9 9,375.7 13,190.3 26,026.9 N/A 68,121 38.2 6,356.0 32.3
of which ope ra ting budge t 3,699.9 8,954.1 4,650.5 7,674.1 14,416.2 22,960 28,114 51.3 5,462.1 61.0
221 Travel 329.6 833.7 355.9 554.9 1,176.0 342.3 41.1
222 Communications 198.6 451.5 193.5 195.1 478.5 27.0 6.0
223 Contracted Services 3,535.3 8,313.6 3,438.7 3,702.3 8,244.6 -69.1 -0.8
224 Repairs and Maintenance 491.3 1,101.8 588.5 1,258.1 2,001.5 899.7 81.7
225 Utilities 851.0 1,449.2 825.3 523.1 1,611.0 161.8 11.2
226 Fuel 359.3 939.1 589.8 705.7 1,548.9 609.8 64.9
227-9 Other Use of Goods and Services 2,356.3 6,582.0 3,384.2 6,251.1 10,966.4 4,384.4 66.6
23 Inte re st (1) - ope ra ting budge t 34.8 72.2 7.2 39.7 84.5 350 350 24.1 12.3 17.0
24 S ocia l T ra nsfe rs - ope ra ting budge t 1,483.7 4,850.2 2,386.6 1,999.0 5,397.4 14,604 14,604 37.0 547.2 11.3
242 Subsidies 0.0 18.0 0.0 0.0 0.0 -18.0 -100.0
245 Grants 9.6 111.1 22.7 5.5 34.1 -77.0 -69.3
247 Social Security 1,325.2 3,610.8 1,937.0 1,605.5 4,532.8 922.1 25.5
248-9 Other Social Transfers 148.9 1,110.4 426.9 388.0 830.5 -279.9 -25.2
25 ACQU IS IT ION OF AS S E T S
25 Gross Acquisition of N onfina ncia l 7,522.5 17,805.3 7,360.9 10,494.2 21,773.7 N/A 64,449 33.8 3,968.5 22.3
of which ope ra ting budge t 276.9 599.7 355.5 581.4 1,109.5 2,927 3,734 29.7 509.8 85.0
25* N e t Acquisition of N onfina ncia l Asse ts 7,508.6 17,710.1 7,352.0 10,484.4 21,732.3 4,022.2 22.7
150 (2)Sale of Land and Buildings -13.9 -95.2 -8.9 -9.8 -41.4 53.8 -56.5
251 Buildings and Structures 5,051.3 12,635.7 3,668.8 4,603.8 9,835.7 -2,800.0 -22.2
252 Machinery / Equipment (>50,000) 691.9 1,294.6 1,298.7 1,774.8 3,297.5 2,002.9 154.7
257 Valuables 2.0 4.7 3.0 0.8 3.9 -0.8 -17.1
258 Land 905.2 1,030.4 115.7 14.8 144.0 -886.4 -86.0
259 Capital Advance Payments 872.1 2,839.8 2,274.6 4,100.0 8,492.6 5,652.8 199.1

3/ Budget and MYR figures of core budget are not available for goods and services (code 21) and capital (code 25) as the published development budget is not broken down into these categories.
4/ Total allocated budget is the same as the approved Budget ceiling. However, individual items for current allocated Budget do not add up to total published budget as they do not include contingency reserves not yet
transferred to budgetary units. Published budget figures are used for interest (code 23) and subsidies and transfers (code 24).

Table 6.3b - Operating Budget Expenditures
1389 1389 1390 1390 1390 1390 Compa rison to Budge t 1390 Compa rison
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 Budge t or Curre nt % to 1389 Y T D
Actua l Actua l Pre lim Pre lim Pre lim Pre lim MYR Alloca te d Alloca te d %
Qtr YT D Qtr Qtr Qtr YT D Ce iling Budge t (3) Budge t Cha nge Incre a se
2 T OT AL GR OSS EXPEN D IT U R ES 26,118.3 72,392.8 23,096.9 35,662.1 38,784.5 97,543.5 150,725.7 150,725.7 64.7 25,150.7 34.7
2* T OT AL N ET EXPE N D IT U R ES (2) 26,104.4 72,297.6 23,074.2 35,653.2 38,774.6 97,502.1 25,204.5 34.9
2-25 R E CU R R EN T E XPEN D IT U R ES 25,841.4 71,793.1 22,924.3 35,306.6 38,203.1 96,434.0 147,798.3 143,081.1 67.4 24,641.0 34.3
21 Compe nsa tion of Employe e s 20,623.1 58,332.9 19,783.5 28,262.3 28,490.2 76,536.0 109,884.0 114,553.0 66.8 18,203.0 31.2
211-3 Wages and Salaries 20,490.1 57,897.8 19,646.7 28,038.0 28,274.9 75,959.6 18,061.8 31.2
214-5 Social Benefits 133.0 435.1 136.7 224.2 215.4 576.4 141.3 32.5
22 U se of Goods a nd Se rvice s 3,699.9 8,954.1 2,091.6 4,650.5 7,674.1 14,416.2 22,960.3 28,113.6 51.3 5,462.1 61.0
221 Travel 270.4 732.2 244.5 301.5 436.1 982.1 249.9 34.1
222 Communications 176.4 402.1 75.8 159.3 148.7 383.8 -18.3 -4.5
223 Contracted Services 137.2 242.5 47.0 61.5 58.5 166.9 -75.5 -31.2
224 Repairs and Maintenance 453.6 1,009.4 138.0 538.6 1,173.4 1,850.0 840.5 83.3
225 Utilities 850.7 1,447.0 262.4 824.1 520.4 1,606.9 160.0 11.1
226 Fuel 335.8 906.0 250.0 575.1 696.9 1,521.9 615.9 68.0
227-9 Other Use of Goods and Services 1,475.8 4,214.9 1,073.8 2,190.6 4,640.2 7,904.5 3,689.6 87.5
23 Inte re st (1) 34.8 72.2 37.5 7.2 39.7 84.5 350.0 64.5 130.9 12.3 17.0
24 Socia l T ra nsfe rs 1,483.7 4,433.8 1,011.8 2,386.6 1,999.0 5,397.4 14,604.0 350.0 1,542.1 963.6 21.7
242 Subsidies 0.0 1.7 0.0 0.0 0.0 0.0 -1.7 -100.0
245 Grants 9.6 111.1 5.9 22.7 5.5 34.1 -77.0 -69.3
247 Social Security 1,325.2 3,610.8 990.3 1,937.0 1,605.5 4,532.8 922.1 25.5
248-9 Other Social Transfers 148.9 710.4 15.6 426.9 388.0 830.5 120.1 16.9
248 Social Assistance 148.9 603.3 15.6 59.5 47.1 122.2 -481.0 -79.7
249 Advance Subsides, Grants 0.0 107.1 0.0 367.4 340.9 708.3 601.2 561.2
25 ACQU ISIT ION OF ASSE T S

25 Gross Acquisition
q of N onfina ncia l Asse ts 276.9 599.7 172.6 355.5 581.4 1,109.5 2,927.4 3,734.5 29.7 509.8 85.0
25* (2) 263.0 504.5 149.9 346.6 571.6 1,068.0 563.5 111.7
150 Sale of Land and Buildings -13.9 -95.2 -22.7 -8.9 -9.8 -41.4 53.8 -56.5
251 Buildings and Structures 41.5 73.7 72.2 97.2 193.8 363.2 289.4 392.5
252 Machinery / Equipment (>50,000) 218.6 390.4 39.8 105.6 353.2 498.6 108.2 27.7
257 Valuables 0.0 0.0 0.1 0.0 0.8 0.9 0.9 3,594.0
258 Land 13.5 129.3 13.5 106.1 7.7 127.3 -2.0 -1.5
259 Capital Advance Payments 3.4 6.3 47.0 46.6 25.9 119.5 113.2 1,807.2
Source: FPU using AFMIS data downloaded on the 7 March 2012, and Central Statistical Office for GDP data.

3/ Total allocated budget is the same as the approved Budget ceiling. However, individual items for current allocated Budget do not add up to total published budget as they do not include contingency reserves not yet transferred
to budgetary units. Published budget figures are used for interest (code 23) and subsidies and transfers (code 24).

Table 6.3c - Development Budget Expenditures
1389 1389 1390 1390 1390 1390 Compa rison to Budge t 1390 Compa rison to
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 Budge t or Curre nt % 1389 YT D
Actua l Actua l Pre lim Pre lim Pre lim Pre lim MYR Alloca te d Alloca te d
Qtr YT D Qtr Qtr Qtr YT D Ce iling (3) Budge t (4) Budge t Cha nge % Incre a se
2 T OT AL GR OSS EXPEN D IT U R ES 11,667.0 28,338.7 5,115.3 11,730.6 15,429.0 32,274.9 101,243.6 101,243.6 31.9 3,936.2 13.9
Discretionary Budget 2,805.2 5,311.5 1,247.9 2,885.6 4,062.3 8,195.8 26,504.0 26,504.0 30.9 2,884.3 54.3
Non-discretionary Budget 8,861.9 23,027.2 3,867.4 8,845.0 11,366.7 24,079.1 74,739.6 74,739.6 32.2 1,051.9 4.6
2* T OT AL N ET EXPEN D IT U R ES (2) 11,667.0 28,338.7 5,115.3 11,730.6 15,429.0 32,274.9 3,936.2 13.9
2-25 R ECU R R EN T EXPEN D IT U R ES 4,421.4 11,133.1 1,369.3 4,725.2 5,516.2 11,610.7 N/A 54,546.6 21.3 477.5 4.3
Compe nsa tion of Employe e s 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 N/A
211-3 Wages and Salaries 0.0 0.0 0.0 0.0 0.0 0.0
214-5 Social Benefits 0.0 0.0 0.0 0.0 0.0 0.0
U se of Goods a nd Se rvice s 4,421.4 10,716.8 1,369.3 4,725.2 5,516.2 11,610.7 N/A 40,007.1 29.0 893.9 8.3
221 Travel 59.2 101.5 20.7 54.4 118.8 194.0 92.4 91.0
222 Communications 22.3 49.4 14.1 34.2 46.4 94.6 45.3 91.6
223 Contracted Services 3,398.1 8,071.2 1,056.6 3,377.2 3,643.8 8,077.6 6.5 0.1
224 Repairs and Maintenance 37.7 92.4 16.9 49.9 84.7 151.5 59.1 64.0
225 Utilities 0.3 2.2 0.2 1.2 2.7 4.1 1.9 85.9
226 Fuel 23.5 33.1 3.4 14.7 8.8 26.9 -6.1 -18.5
227-9 Other Use of Goods and Services 880.5 2,367.1 257.3 1,193.6 1,611.0 3,061.9 694.8 29.4
23 Inte re st (1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 285.5 0.0 0.0 N/A
24 Socia l T ra nsfe rs 0.0 416.3 0.0 0.0 0.0 0.0 0.0 14,254.0 0.0 -416.3 -100.0
242 Subsidies 0.0 16.3 0.0 0.0 0.0 0.0 -16.3 -100.0
245 Grants 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
247 Social Security 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
248-9 Other Social Transfers 0.0 400.0 0.0 0.0 0.0 0.0 -400.0 -100.0
25 ACQU ISIT ION OF ASSET S

Gross Acquisition of N onfina ncia l Asse ts 7,245.6 17,205.5 3,746.0 7,005.4 9,912.8 20,664.3 N/A 60,738.0 34.0 3,458.7 20.1
25* N e t Acquisition of N onfina ncia l Asse ts (2) 7,245.6 17,205.5 3,746.0 7,005.4 9,912.8 20,664.3 3,458.7 20.1
150 Sale of Land and Buildings 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
251 Buildings and Structures 5,009.9 12,562.0 1,490.8 3,571.6 4,410.1 9,472.5 -3,089.5 -24.6
252 Machinery / Equipment (>50,000) 473.3 904.2 184.2 1,193.1 1,421.6 2,798.9 1,894.7 209.6
257 Valuables 2.0 4.7 0.0 3.0 0.0 3.0 -1.7 -36.3
258 Land 891.7 901.1 0.0 9.6 7.1 16.7 -884.4 -98.1
259 Capital Advance Payments 868.7 2,833.6 2,071.0 2,228.1 4,074.1 8,373.1 5,539.6 195.5

3/ Budget and MYR figures of core budget are not available for goods and services (code 21) and capital (code 25) as the published development budget is not broken down into these categories.
4/ Total allocated budget is the same as the approved Budget ceiling. However, individual items for current allocated Budget do not add up to total published budget as they do not include contingency reserves not yet transferred to
budgetary units. Published budget figures are used for interest (code 23) and subsidies and transfers (code 24).

Table 6.4 Total Core Budget Expenditures by Afghanistan National Development Strategy Pillar
1389 1389 1390 1390 1390 Compa rison to Budge t 1390 Compa rison
Qtr 3 Qtr 3 Qtr 2 Qtr 3 Qtr 3 Budge t or Curre nt % to 1389 YT D
In millions of Afgha nis
Actua l Actua l Pre lim Pre lim Pre lim MYR Alloca te d Alloca te d %
T OT AL GR OSS EXPEN D IT U R ES 49,954.6 130,766.6 59,679.1 67,487.7 161,129.5 251,258.5 251,258.5 64.1 30,362.9 23.2
Operating Budget 39,468.2 103,618.7 48,935.7 53,631.9 130,619.1 151,133.3 151,133.3 86.4 27,000.4 26.1
Development Budget 14,671.5 40,450.4 16,870.7 21,155.1 48,108.1 101,228.7 101,228.7 47.5 7,657.7 18.9
Se curity 14,703.9 40,880.5 20,646.4 21,382.9 55,473.5 87,475.0 91,207.3 60.8 14,593.1 35.7
Development Budget 63.9 261.8 59.4 78.5 137.9 1,038.6 1,038.6 13.3 -123.9 -47.3
T ota l Gove rna nce , R ule of La w a nd H uma n R ights 2,338.8 7,778.2 3,388.8 2,837.3 8,913.8 12,972.0 13,974.8 63.8 1,135.7 14.6
Operating Budget 2,020.6 5,837.9 3,023.7 2,434.1 6,743.2 10,671.3 11,621.1 58.0 905.3 15.5
Development Budget 282.2 1,812.9 298.8 332.3 2,050.4 3,404.3 3,404.3 60.2 237.5 13.1
T ota l Infra structure a nd N a tura l R e source s 19,061.6 45,351.4 17,799.1 20,901.6 46,453.2 48,257.8 123,420.6 37.6 1,101.8 2.4
T ota l Educa tion 6,873.1 18,331.1 8,251.1 7,745.2 20,525.7 36,847.6 38,050.9 53.9 2,194.6 12.0
Development Budget 1,585.6 4,226.6 1,463.4 1,365.3 3,084.8 11,757.1 11,757.1 26.2 -1,141.8 -27.0
T ota l H e a lth 1,635.5 4,014.1 1,989.4 1,762.1 4,446.4 10,404.7 10,453.8 42.5 432.3 10.8
Operating Budget 511.3 1,311.4 527.8 505.8 1,417.8 2,663.6 2,712.7 52.3 106.4 8.1
Development Budget 1,124.1 2,702.7 1,461.6 1,256.2 3,028.6 7,741.1 7,741.1 39.1 325.9 12.1
T ota l Agriculture a nd R ura l D e ve lopme nt 2,194.6 6,350.2 3,615.3 5,542.3 11,941.3 24,731.9 25,761.3 46.4 5,591.1 88.0
T ota l Socia l Prote ction 1,809.3 4,842.2 2,678.3 2,583.3 6,571.9 2,792.4 10,157.3 64.7 1,729.6 35.7
Development Budget 113.0 264.6 135.8 199.0 378.5 1,025.8 1,025.8 36.9 113.9 43.0
T ota l Economic Gove rna nce a nd Priva te Se ctor D e ve lopme nt 1,337.8 3,219.1 1,311.0 4,733.1 6,803.7 9,298.2 13,302.4 51.1 3,584.6 111.4
Operating Budget 831.5 1,894.5 731.0 3,768.6 4,987.6 3,959.9 7,964.1 62.6 3,093.1 163.3
T ota l U ncla ssifie d 0.0 0.0 0.0 0.0 0.0 18,478.8 3,524.4 0.0 0.0 N /A
Operating Budget 0.0 0.0 0.0 0.0 0.0 14,954.4 0.0 - 0.0 N/A
Development Budget 0.0 0.0 0.0 0.0 0.0 3,524.4 3,524.4 0.0 0.0 N/A
(1) For individual Ministries (not the total budget), allocated operating Budget may not equal the approved budget, as funds are allocated from contingency reserve during the year. Allocated budget for
the development budget is the same as the latest approved budget.

Table 6.5a Total Core Budget Gross Expenditures by Ministry
Actua l Actua l Pre lim P re lim Pre lim MYR Alloca te d Alloca te d %
25 T OT AL GR OSS EXPE N D IT U R ES 49,954.6 130,766.6 59,679.1 67,487.7 161,129.5 251,258.5 251,258.5 64.1 30,362.9 23.2
Ope ra ting Budge t 39,468.2 103,618.7 48,935.7 53,631.9 130,619.1 151,133.3 151,133.3 86.4 27,000.4 26.1
D e ve lopme nt Budge t 14,671.5 40,450.4 16,870.7 21,155.1 48,108.1 101,228.7 101,228.7 47.5 7,657.7 18.9
26 Ministry of Inte rior 6,652.2 18,228.1 9,841.5 8,861.1 23,324.3 36,294.2 37,963.5 61.4 5,096.2 28.0
Development Budget 17.3 182.7 17.6 27.6 45.1 237.7 237.7 19.0 -137.6 -75.3
22 Ministry of D e fe nce 6,681.6 18,782.8 8,733.4 10,159.6 26,314.4 43,282.2 44,774.3 58.8 7,531.6 40.1
Development Budget 0.0 0.0 0.0 7.2 7.2 79.8 79.8 9.0 7.2 N/A
23 Ministry of Fore ign Affa irs 413.4 1,103.7 730.6 711.3 1,672.0 2,871.3 3,195.2 52.3 568.3 51.5
Development Budget 0.8 6.2 1.7 25.1 26.8 588.1 588.1 4.6 20.6 330.2
15 Pre side ntia l Prote ctive S e rvice 259.1 683.4 267.1 287.1 760.8 872.9 1,117.8 68.1 77.3 11.3
Operating Budget 231.8 656.2 233.1 268.5 708.2 764.0 1,008.9 70.2 52.0 7.9
64 Ge ne ra l D ire ctora te of N a tiona l S e curity 697.5 2,082.5 1,073.8 1,363.8 3,402.1 4,154.5 4,156.4 81.9 1,319.6 63.4
Operating Budget 678.9 2,036.8 1,067.6 1,363.8 3,395.9 4,130.4 4,132.3 82.2 1,359.1 66.7
T ota l S e curity 14,703.9 40,880.5 20,646.4 21,382.9 55,473.5 87,475.0 91,207.3 60.8 14,593.1 35.7
10 Pre side nts Office 298.7 984.9 365.1 437.2 1,150.8 1,847.9 2,065.9 55.7 165.9 16.8
Operating Budget 279.5 918.6 350.7 392.9 1,085.0 1,468.6 1,686.6 64.3 166.5 18.1
11 N a tiona l Asse mbly Me sha nro Jirga 94.8 282.0 77.2 132.8 328.7 464.2 483.6 68.0 46.7 16.6
Operating Budget 89.2 263.2 73.3 125.8 305.7 357.1 376.4 81.2 42.5 16.1
12 N a tiona l Asse mbly W ole si Jirga 137.2 482.0 205.2 301.0 747.5 903.1 933.8 80.0 265.5 55.1
14 Supre me Court 298.6 782.9 316.1 401.8 1,003.7 1,445.9 1,468.1 68.4 220.7 28.2
Operating Budget 293.0 743.4 285.3 339.6 896.3 1,192.7 1,214.9 73.8 152.8 20.6
50 Ministry of Justice 531.4 1,319.4 616.9 563.0 1,528.0 2,417.7 1,944.4 78.6 208.7 15.8
13 Administra tive Affa irs 351.5 1,319.8 484.5 299.4 1,091.4 640.0 1,519.4 71.8 -228.5 -17.3
Operating Budget 326.8 1,295.1 484.5 270.9 1,062.9 563.3 1,442.6 73.7 -232.3 -17.9
21 Ministry of S ta te a nd Pa rlia me nta rt Affa irs 12.1 31.0 26.9 22.5 63.1 80.0 102.2 61.7 32.1 103.4
Development Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 N/A
24 Ministry of H a j a nd R e ligious Affa irs -193.1 292.2 326.0 -242.9 456.0 729.0 854.2 53.4 163.8 56.0
Operating Budget -196.8 260.4 292.8 -262.6 392.0 595.9 721.0 54.4 131.5 50.5
51 Attorne y Ge ne ra l 163.4 418.6 203.5 176.2 537.1 826.7 866.9 62.0 118.5 28.3
72 Ele ction Commission 19.2 58.1 24.2 24.1 61.9 106.5 113.1 54.7 3.8 6.5
62 IAR CS C 142.8 433.0 192.8 215.4 497.0 257.0 304.2 163.4 64.0 14.8
67 T he H igh office of Ove rsight a nd Anti Corruption 480.8 1,371.3 547.9 504.2 1,441.9 143.2 149.1 967.3 70.6 5.1
Development Budget 462.6 1,330.3 522.2 478.3 1,373.6 53.8 53.8 2,552.7 43.3 3.3
59 Inde pe nde nt D ire ctora te of Loca l Gove rna nce 1.3 3.0 2.4 2.7 6.9 1,875.1 1,939.1 0.4 3.9 132.2
Operating Budget 402.8 0.0 447.8 443.8 0.0 1,851.6 1,915.6 0.0 0.0 N/A
Development Budget -401.5 3.0 -445.3 -441.1 6.9 23.5 23.5 29.2 3.9 132.2
74 Le ga l T ra ining Ce nte r 0.0 0.0 0.0 0.0 0.0 1,235.6 1,230.8 0.0 0.0 N/A
Operating Budget 1.3 0.0 2.4 2.7 0.0 11.6 6.9 0.0 0.0 N/A
Development Budget -1.3 0.0 -2.4 -2.7 0.0 1,223.9 1,223.9 0.0 0.0 N/A
T ota l Gove rna nce , R ule of La w a nd H uma n R ights 2,338.8 7,778.2 3,388.8 2,837.3 8,913.8 12,972.0 13,974.8 63.8 1,135.7 14.6
Operating Budget 2,020.6 5,837.9 3,023.7 2,434.1 6,743.2 10,671.3 11,621.1 58.0 905.3 15.5
(1) For individual Ministries (not the total budget), allocated operating Budget may not equal the approved budget, as funds are allocated from contingency reserve during the year. Allocated budget for
the development budget is the same as the latest approved budget.

Table 6.5b Total Core Budget Gross Expenditures by Ministry (continued)
Actua l Actua l Pre lim Pre lim Pre lim MYR Alloca te d Alloca te d
Qtr YT D Qtr Qtr YT D Ce iling Budge t (1) Budge t Cha nge % Incre a se
42 Ministry of Public W orks 3,444.7 8,845.7 2,138.8 3,550.3 6,325.5 19,871.3 20,915.8 30.2 -2,520.2 -28.5
Operating Budget 264.8 524.8 375.3 946.2 1,394.9 1,794.9 2,839.4 49.1 870.1 165.8
45 Ministry of T ra nsport a nd Avia tion 207.4 601.1 354.1 380.1 868.1 1,896.0 2,182.2 39.8 267.0 44.4
34 Ministry of Communica tion 110.7 547.0 173.1 1,100.2 1,360.0 2,269.0 2,270.4 59.9 813.0 148.6
Development Budget 8.0 255.4 58.9 986.4 1,051.2 1,817.1 1,817.1 57.9 795.8 311.6
41 Ministry of Ene rgy a nd W a te r 2,158.6 3,143.0 2,152.3 1,113.9 4,125.9 12,761.6 12,771.1 32.3 983.0 31.3
49 Ministry of Urba n D e ve lopme nt 232.1 808.1 184.2 325.4 577.0 1,275.3 1,403.1 41.1 -231.0 -28.6
32 Ministry of Mine s a nd Industrie s 32.6 86.2 31.1 32.3 88.2 288.0 289.5 30.5 2.0 2.3
65 Ge ode sy a nd Ca rtogra phy Office 0.0 0.0 0.0 0.0 22.0 0.0 0.0 - 22.0 N /A
60 Dire ctora te of Environme nt 276.5 430.4 104.9 361.0 467.0 1,387.9 1,387.9 33.6 36.6 8.5
Operating Budget 6,770.5 15,129.1 5,474.5 7,352.0 14,828.9 48,257.8 49,762.9 29.8 -300.2 -2.0
Development Budget 653.5 1,636.6 943.4 1,526.9 2,913.0 3,822.3 3,822.3 76.2 1,276.4 78.0
75 Afgha nista n High Atomic Ene rgy Commission 6,770.5 15,129.1 5,474.5 7,352.0 14,828.9 48,257.8 49,762.9 29.8 -300.2 -2.0
79 Municipa litie s 5,828.6 15,760.8 7,186.1 6,686.3 17,790.6 31,332.3 32,437.7 54.8 2,029.8 12.9
T ota l Infra structure a nd Na tura l R e source s 19,061.6 45,351.4 17,799.1 20,901.6 46,453.2 48,257.8 123,420.6 37.6 1,101.8 2.4
27 Ministry of Educa tion 5,828.6 15,760.8 7,186.1 6,686.3 17,790.6 31,332.3 32,437.7 54.8 2,029.8 12.9
28 Ministry of Highe r Educa tion 676.0 1,700.6 752.5 700.0 1,859.2 3,502.7 3,524.5 52.8 158.6 9.3
36 Ministry of Informa tion a nd Culture 189.0 469.7 180.8 179.4 467.9 1,325.7 1,380.7 33.9 -1.9 -0.4
61 Scie nce Aca de my 62.3 128.7 39.1 47.8 122.2 193.4 198.5 61.6 -6.5 -5.0
63 Na tiona l Olympic Committe e 117.1 271.2 92.5 131.8 285.8 493.5 509.4 56.1 14.7 5.4
T ota l Educa tion 6,873.1 18,331.1 8,251.1 7,745.2 20,525.7 36,847.6 38,050.9 53.9 2,194.6 12.0
37 Ministry of Public H e a lth 1,635.5 4,014.1 1,989.4 1,762.1 4,446.4 10,404.7 10,453.8 42.5 432.3 10.8
T ota l He a lth 1,635.5 4,014.1 1,989.4 1,762.1 4,446.4 10,404.7 10,453.8 42.5 432.3 10.8

Table 6.5c - Total Core Budget Gross Expenditures by Ministry (continued)
Actua l Actua l Pre lim P re lim Pre lim MYR Alloca te d Alloca te d %
39 Ministry of Agriculture 731.8 1,892.3 1,080.0 1,197.2 2,683.1 5,353.6 6,347.9 42.3 790.8 41.8
48 Ministry of Counte r N a rcotics 36.7 133.3 56.8 44.2 119.7 362.1 380.4 31.5 -13.5 -10.1
43 Ministry of R ura l R e ha bilita tion a nd D e ve lopme nt 1,426.2 4,324.6 2,478.5 4,300.9 9,138.5 19,016.2 19,032.9 48.0 4,813.9 111.3
T ota l Agriculture a nd R ura l D e ve lopme nt 2,194.6 6,350.2 3,615.3 5,542.3 11,941.3 24,731.9 25,761.3 46.4 5,591.1 88.0
46 Ministry of Frontie rs a nd T riba l Affa irs 86.1 223.6 114.2 134.7 319.3 431.7 469.2 68.1 95.7 42.8
Development Budget 0.9 1.6 14.3 21.8 36.1 73.8 73.8 48.9 34.5 2,188.1
47 Ministry of Ma rtyrs, D isa ble d a nd Socia l Affa irs 1,564.5 4,266.5 2,407.1 2,282.6 5,850.5 1,616.7 8,917.3 65.6 1,584.0 37.1
Operating Budget 1,498.7 4,083.0 2,324.7 2,165.6 5,615.8 946.2 8,246.8 68.1 1,532.8 37.5
29 Ministry of R e fuge e s a nd R e pa tria te s 63.6 139.5 73.5 68.6 176.8 314.9 335.9 52.6 37.3 26.7
38 Ministry of W ome n Affa irs 53.5 121.7 52.3 70.0 149.1 259.6 264.0 56.5 27.4 22.5
68 Office of D isa ste r Pre pa re dne ss 19.3 45.4 16.4 18.5 45.2 112.0 112.5 40.2 -0.2 -0.4
Operating Budget 19.3 45.4 16.4 18.5 45.2 88.5 89.0 50.8 -0.2 -0.4
76 D ire ctora te of Kochis 22.4 45.5 14.9 8.9 30.9 57.6 58.3 53.1 -14.5 -31.9
T ota l S ocia l Prote ction 1,809.3 4,842.2 2,678.3 2,583.3 6,571.9 2,792.4 10,157.3 64.7 1,729.6 35.7
20 Ministry of Fina nce 1,052.6 2,514.3 969.4 4,434.1 5,995.2 4,941.3 8,927.5 67.2 3,480.8 138.4
25 Ministry of Comme rce 69.3 187.6 83.0 82.3 209.9 2,313.0 2,316.4 9.1 22.3 11.9
35 Ministry of E conomy 80.5 194.3 87.1 85.0 242.8 1,006.5 1,006.4 24.1 48.5 25.0
66 Control a nd Audit Office 67.7 190.3 88.7 68.5 174.8 507.9 515.0 33.9 -15.6 -8.2
73 Ce ntra l Sta tistics Office 57.6 110.4 35.8 48.3 111.9 263.0 266.3 42.0 1.5 1.3
58 Afgha nista n N a tiona l Sta nda rd Authority 10.0 22.1 46.9 14.9 69.1 266.6 270.8 25.5 47.0 213.0
T ota l E conomic Gov. a nd Priva te Se ctor D e ve l't 1,337.8 3,219.1 1,311.0 4,733.1 6,803.7 9,298.2 13,302.4 51.1 3,584.6 111.4
80 Afgha nista n Inve stme nt S upport Age ncy 0.0 0.0 0.0 0.0 0.0 380.2 380.2 0.0 0.0 N/A
Operating Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 N/A
81 Micro Fina nce Inve stme nt Support Fa cility for Afgha nis 0.0 0.0 0.0 0.0 0.0 446.5 2,697.7 0.0 0.0 N/A
Operating Budget 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 N/A
90 U na lloca te d R e se rve s 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 N/A
Operating Budget 0.0 0.0 0.0 0.0 0.0 0.0 2,697.7 0.0 0.0 N/A
99 U nspe cifie d 0.0 0.0 0.0 0.0 0.0 17,652.0 3,524.4 0.0 0.0 N/A
T ota l U ncla ssifie d 0.0 0.0 0.0 0.0 0.0 18,478.8 3,524.4 0.0 0.0 N/A

Table 6.6a Core Budget Gross Expenditures by Program (Ministries implementing Program Budgeting in 1390)
OP E R AT IN G BU D GE T D E V E LOP M E N T BU D GE T T OT AL BU D GE T
1389 Co mp a riso n to Bud g e t 1389 Co mp a riso n to Bud g e t 1389 Co mp a riso n to Bud g e t
Co d e In millio ns o f Afg ha nis Qtr 3 Curre nt % Qtr 3 Curre nt % Qtr 3 Curre nt %
P re lim Allo ca te d Allo ca te d P re lim Allo ca te d Allo ca te d P re lim Allo ca te d Allo ca te d
YT D Bud g e t (1) Bud g e t YT D Bud g e t (1) Bud g e t YT D Bud g e t (1) Bud g e t
27 M inistry o f E d uca tio n 12,182.4 23,167.9 52.6 3,600.4 9,477.4 38.0 15,782.7 32,645.3 48.3
271 General and Islamic Education 10,520.4 19,287.1 54.5 420.0 4,414.8 9.5 10,940.3 23,701.9 46.2
272 Curriculum Development ,T eacher Education and Education S 437.9 976.3 44.9 1,368.6 2,763.7 49.5 1,806.6 3,740.0 48.3
273 T echnical and Vocational Education & T rainings (T VET ) 408.5 918.9 44.5 207.9 816.2 25.5 616.4 1,735.1 35.5
274 Literacy 213.0 458.6 46.4 106.7 679.0 15.7 319.7 1,137.6 28.1
275 Education Management 602.6 1,527.0 39.5 1,497.2 803.8 186.3 2,099.7 2,330.7 90.1
999 Expenditure returns 0.0 0.0 N/A 0.0 0.0 N/A 0.0 0.0 N/A
39 M inistry o f Ag riculture , Irrig a tio n a nd Live sto ck 737.8 2,123.9 34.7 1,155.9 4,742.2 24.4 1,893.7 6,866.0 27.6
391 Natural Resource Management 161.3 252.6 63.9 105.1 269.5 39.0 266.4 522.1 51.0
392 Agricalture ptoduction and productivity 238.6 1,372.1 17.4 603.5 1,822.2 33.1 842.2 3,194.3 26.4
393 Economic Regeneration 138.5 174.1 79.6 268.4 1,734.1 15.5 406.9 1,908.2 21.3
394 Change Management 199.4 325.2 61.3 178.8 916.3 19.5 378.2 1,241.5 30.5
43 M inistry o f R ura l R e ha b ilita tio n a nd D e ve lo p me nt 0.6 532.9 0.1 3,991.2 18,815.2 21.2 3,991.8 19,348.0 20.6
431 Local Governance 0.6 0.0 N/A 2,793.5 15,075.7 18.5 2,794.1 15,075.7 18.5
432 Rural Infrastructure 0.0 0.0 N/A 1,113.0 2,915.6 38.2 1,113.0 2,915.6 38.2
433 Economic Regeneration 0.0 0.0 N/A 84.7 823.9 10.3 84.7 823.9 10.3
434 Institutional Support Program 0.0 532.9 0.0 0.0 0.0 N/A 0.0 532.9 0.0
41 M inistry o f E ne rg y & W a te r 212.0 376.6 56.3 2,931.5 12,510.5 23.4 3,143.5 12,887.2 24.4
411 Availability of competitively priced electricity for community live 14.9 25.2 59.2 1,512.0 6,141.9 24.6 1,527.0 6,167.1 24.8
412 Availability of and accessibility to water for community livelihood 69.4 135.3 51.3 1,400.0 6,256.2 22.4 1,469.4 6,391.5 23.0
413 General Administration 127.7 216.1 59.1 19.5 112.5 17.3 147.2 328.6 44.8
20 M inistry o f F ina nce 1,483.5 5,575.0 26.6 1,056.9 4,020.4 26.3 2,540.4 9,595.4 26.5
201 Public Finance Management 385.0 3,267.7 11.8 455.0 1,121.6 40.6 840.0 4,389.2 19.1
202 Revenue Managemnet 236.7 491.6 48.2 86.8 1,363.7 6.4 323.5 1,855.3 17.4
203 Policy Management 812.9 84.6 960.5 498.7 899.4 55.4 1,311.6 984.0 133.3
204 General Administration 48.9 1,731.2 2.8 16.5 635.7 2.6 65.3 2,366.9 2.8
42 M inistry o f P ub lic W o rks 525.3 2,839.4 18.5 8,320.9 18,038.0 46.1 8,846.3 20,877.4 42.4
421 Infrastructure 12.6 33.7 37.5 8,320.9 17,325.7 48.0 8,333.5 17,359.4 48.0
422 Road Maintenance 440.1 2,637.5 16.7 0.0 23.5 0.0 440.1 2,661.0 16.5
423 Adminisration and Finance 72.6 168.2 43.2 0.0 688.8 0.0 72.6 857.1 8.5
37 M inistry o f P ub lic H e a lth 1,317.6 2,712.7 48.6 2,702.7 7,747.7 34.9 4,020.3 10,460.4 38.4
371 Institutional Development 25.8 81.2 31.8 239.0 831.3 28.7 264.8 912.5 29.0
372 Health Services Provision 536.1 1,182.2 45.4 2,463.7 6,916.4 35.6 2,999.9 8,098.6 37.0
373 Administrative Support 755.7 1,449.4 52.1 0.0 0.0 N/A 755.7 1,449.4 52.1
59 Ind e p e nd e nt D ire cto ra te o f Lo ca l Go ve rna nce 1,194.4 0.0 N/A 177.4 0.0 N/A 1,371.8 0.0 N/A
591 IDLG Policy 3.9 0.0 N/A 0.0 0.0 N/A 3.9 0.0 N/A
592 Institutional Development 3.2 0.0 N/A 177.4 0.0 N/A 180.5 0.0 N/A
593 Broader Governance 1,034.9 0.0 N/A 0.0 0.0 N/A 1,034.9 0.0 N/A
594 Support Services 152.4 0.0 N/A 0.0 0.0 N/A 152.4 0.0 N/A
49 M inistry o f U rb a n D e ve lo p me nt 88.5 28.8 307.7 720.6 0.0 N/A 809.2 28.8 2,812.7
491 Planning and Urban Development 13.1 18.6 70.4 137.3 0.0 N/A 150.4 18.6 809.2
492 Housing 2.1 10.2 20.5 160.0 0.0 N/A 162.1 10.2 1,591.2
493 Urban Infrastructure 13.3 0.0 N/A 423.4 0.0 N/A 436.7 0.0 N/A
494 Operation and Management 60.0 0.0 N/A 0.0 0.0 N/A 60.0 0.0 N/A
(1) Official data on the revised development budget by program are not available. Figures on allocated budget for the development budget are taken from budget alocations shown in AFMIS data, which differs from published data shown in Tables 6.5.

Table 6.6b Core Budget Gross Expenditures by Program (Ministries implementing Program Budgeting in 1390) continued
OP E R AT IN G BU D GE T D E V E LOP M E N T BU D GE T T OT AL BU D GE T
1389 Co mp a riso n to Bud g e t 1389 Co mp a riso n to Bud g e t 1389 Co mp a riso n to Bud g e t
Co d e In millio ns o f Afg ha nis Qtr 3 Curre nt % Qtr 3 Curre nt % Qtr 3 Curre nt %
P re lim Allo ca te d Allo ca te d P re lim Allo ca te d Allo ca te d P re lim Allo ca te d Allo ca te d
YT D Bud g e t (1) Bud g e t YT D Bud g e t (1) Bud g e t YT D Bud g e t (1) Bud ge t
45 M inistry o f T ra nsp o rt & Civil Avia tio n 228.5 725.7 31.5 373.0 1,529.2 24.4 601.6 2,254.9 26.7
451 Air T ransport Service 112.4 431.6 26.0 118.5 1,446.2 8.2 478.4 1,877.7 25.5
452 Land T ransport Services 46.3 122.6 37.8 3.2 74.7 4.3 53.4 197.3 27.1
453 Management and Operation Services 69.8 171.6 40.7 0.0 8.3 0.0 69.8 179.9 38.8
34 M inistry o f Co mmunica tio n a nd Info rma tio n T e chno lo gy 25,224.5 453.4 5,563.8 8.0 1,844.0 0.4 547.2 2,297.4 23.8
341 Electronic Afghanistan (E- Afghanistan) 19,557.2 84.7 23,078.2 8.0 1,822.4 0.4 311.6 1,907.1 16.3
342 ICT literacy 389.6 21.3 1,828.1 0.0 7.6 0.0 12.6 28.9 43.5
343 General Administration & Management 5,277.7 347.3 1,519.6 0.0 14.1 0.0 223.0 361.4 61.7
25 M inistry o f Co mme rce a nd Ind ustry 147.6 1,890.4 7.8 17.0 425.9 4.0 187.5 2,316.4 8.1
251 Private sector and industry development 24.2 48.8 49.6 7.8 165.7 4.7 36.7 214.5 17.1
252 T rade Policy and T ransit 61.6 106.6 57.7 0.0 159.8 0.0 61.6 266.4 23.1
253 Admin and regulatory services 61.8 1,735.0 3.6 9.3 100.4 9.2 89.2 1,835.5 4.9
47 M inistry o f La b o ur, S ocia l Affa irs, M a rtyrs a nd D isa b le 4,083.5 8,246.8 49.5 65.8 717.5 9.2 4,267.0 8,964.3 47.6
471 Labor Support Program 3,638.4 3,293.8 110.5 60.0 598.5 10.0 3,805.0 3,892.3 97.8
472 Social Support Program 150.3 366.8 41.0 0.0 29.6 0.0 150.3 396.3 37.9
473 Martyrs and Disabled 11.2 3,898.8 0.3 0.0 52.8 0.0 11.2 3,951.6 0.3
474 Mangagment and Operations Program 283.6 687.4 41.3 5.8 36.7 15.8 300.5 724.0 41.5
22 M inistry o f D e fe nce 10.4 13.4 77.5 0.0 14.2 0.0 10.4 27.7 37.6
221 Cambat forces 64.9 137.2 47.3 18.3 85.0 21.5 92.7 222.2 41.7
222 Supportive forces 118.1 230.3 51.3 30.4 776.1 3.9 194.4 1,006.4 19.3
999 Expenditure returns 59.5 136.4 43.6 29.7 279.5 10.6 134.3 415.9 32.3
38 M inistry o f W o me n's Affa irs 58.6 93.9 62.5 0.7 496.6 0.1 60.2 590.5 10.2
381 Women Support and Strengthening 919.7 1,686.6 54.5 19.2 379.4 5.1 986.0 2,066.0 47.7
382 Gender Development & monitoring of Plicy 919.7 1,686.6 54.5 19.2 379.4 5.1 986.0 2,066.0 47.7
383 Administration and Finance 0.0 1,214.9 0.0 0.0 253.4 0.0 0.0 1,468.3 0.0
999 Expenditure returns 0.0 1,214.9 0.0 0.0 253.4 0.0 0.0 1,468.3 0.0
35 M inistry o f E co no my 0.0 1,008.9 0.0 0.0 108.9 0.0 0.0 1,117.8 0.0
351 Economic Policy and Strategy and Monitoring and Evaluation 0.0 711.1 0.0 0.0 108.9 0.0 0.0 820.0 0.0
352 Administration and Management Services 0.0 297.8 0.0 0.0 0.0 N/A 0.0 297.8 0.0
999 Expenditure returns 0.0 46.7 0.0 0.0 0.0 N/A 0.0 46.7 0.0
10 P re sid e nt's Office - 46.7 - - - N/A - 46.7 -
101 Services to president 0.0 376.4 0.0 0.0 107.1 0.0 0.0 483.6 0.0
999 Expenditure returns 0.0 376.4 0.0 0.0 107.1 0.0 0.0 483.6 0.0
28 M inistry o f H ig he r E d uca tio n 0.0 1,442.6 0.0 0.0 0.0 N/A 0.0 1,442.6 0.0
281 Educate & T rain Skilled Graduates 0.0 0.0 N/A 0.0 0.0 N/A 0.0 0.0 N/A
282 Lead and Manage system of Higher Education 0.0 0.0 N/A 0.0 0.0 N/A 0.0 0.0 N/A
999 Expenditure returns 0.0 1,442.6 0.0 0.0 0.0 N/A 0.0 1,442.6 0.0
62 Civil S e rvice Co mmisso in 0.0 926.5 0.0 0.0 7.3 0.0 0.0 933.8 0.0
621 Appointments and Appeals 0.0 926.5 0.0 0.0 7.3 0.0 0.0 933.8 0.0
622 Public Administration Reform 0.0 2,607.1 0.0 0.0 591.0 0.0 0.0 3,198.2 0.0
623 Capacity Building 0.0 1,079.1 0.0 0.0 0.0 N/A 0.0 1,079.1 0.0
624 Adm & operations 0.0 18.0 0.0 0.0 0.0 N/A 0.0 18.0 0.0
999 Expenditure returns 0.0 1,510.0 0.0 0.0 591.0 0.0 0.0 2,101.1 0.0
(1) Official data on the revised development budget by program are not available. Figures on allocated budget for the development budget are taken from budget alocations shown in AFMIS data, which differs from published data shown in Tables 6.5.

Table 6.7 Total Core Budget Expenditures by COFOG Sector
1389 1389 1389 1390 1390 1390 1390 1390 1390 Compa rison to
Qtr 3 Qtr 3 Pe rce nt Qtr 1 Qtr 2 Qtr 3 Qtr 3 Pe rce nt 1389 YT D
Actua l Actua l of T ota l Pre lim Pre lim Pre lim Pre lim of T ota l Cha nge % Incre a se
Qtr YT D Qtr Qtr Qtr YT D
2 T OT AL NET EXPEND IT UR E 37,771.4 100,636.3 28,189.6 47,383.8 54,203.7 129,777.0 29,140.7 29.0
150 Sale of Land and Buildings 13.9 95.2 22.7 8.9 9.8 41.4 -53.8 -56.5
2+150 T OT AL GR OSS EXPEN DIT UR E 37,785.4 100,731.5 100.0 28,212.3 47,392.7 54,213.5 129,818.5 100.0 29,087.0 28.9
RECURRENT EXPENDITURE 30,262.9 82,926.2 82.3 24,293.6 40,031.8 43,719.3 108,044.7 83.2 25,118.5 30.3
CAPITAL EXPENDITURE 7,522.5 17,805.3 17.7 3,918.6 7,360.9 10,494.2 21,773.7 16.8 3,968.5 22.3
701 Ge ne ra l Public Se rvice s (1) 2,802.6 8,561.0 8.5 2,435.6 3,796.7 7,330.0 13,562.3 10.4 5,001.3 58.4
Recurrent Expenditure 2,458.5 7,868.5 7.8 2,227.2 3,518.6 6,856.9 12,602.6 9.7 4,734.2 60.2
Capital Expenditure 344.1 692.6 0.7 208.4 278.1 473.1 959.7 0.7 267.1 38.6
702 D e fe nce 7,681.0 21,628.5 21.5 8,620.1 10,114.6 11,856.5 30,591.2 23.6 8,962.8 41.4
703 Public Orde r a nd Sa fe ty 7,695.0 20,855.1 20.7 5,454.2 11,065.4 10,075.5 26,595.0 20.5 5,740.0 27.5
704 Economic Affa irs 9,308.7 22,010.5 21.9 4,830.1 9,114.0 13,125.9 27,070.0 20.9 5,059.5 23.0
Recurrent Expenditure 3,560.4 8,739.2 8.7 1,438.4 3,325.0 4,392.0 9,155.4 7.1 416.2 4.8
Capital Expenditure 5,748.3 13,271.4 13.2 3,391.7 5,789.1 8,733.9 17,914.6 13.8 4,643.3 35.0
705 Environme nta l Prote ction 314.5 515.3 0.5 23.0 44.4 48.6 115.9 0.1 -399.4 -77.5
Recurrent Expenditure 29.1 75.8 0.1 21.8 34.3 35.0 91.2 0.1 15.3 20.2
Capital Expenditure 285.5 439.5 0.4 1.2 10.1 13.5 24.8 0.0 -414.7 -94.4
706 H ousing a nd Communa l Ame nitie s 263.2 1,013.3 1.0 72.8 228.6 346.2 647.6 0.5 -365.7 -36.1
Recurrent Expenditure 133.7 354.7 0.4 42.0 141.8 95.1 278.8 0.2 -75.9 -21.4
707 H e a lth 1,674.5 4,153.7 4.1 705.2 2,032.9 1,790.9 4,529.1 3.5 375.4 9.0
Recurrent Expenditure 1,601.4 3,897.0 3.9 676.6 1,973.5 1,718.3 4,368.4 3.4 471.4 12.1
708 R e cre a tion, Culture a nd Re ligion 405.2 1,326.1 1.3 542.3 600.7 70.4 1,213.4 0.9 -112.7 -8.5
Recurrent Expenditure 327.4 1,088.0 1.1 493.0 525.9 -36.3 982.6 0.8 -105.4 -9.7
709 Educa tion 6,682.9 17,914.3 17.8 4,424.4 8,072.6 7,788.4 20,285.5 15.6 2,371.1 13.2
Capital Expenditure 599.1 1,641.8 1.6 87.9 763.4 346.1 1,197.4 0.9 -444.4 -27.1
710 Socia l Prote ction 957.8 2,753.7 2.7 1,104.5 2,322.7 1,781.1 5,208.3 4.0 2,454.7 89.1
Recurrent Expenditure 920.9 2,689.2 2.7 1,100.3 2,287.3 1,737.4 5,125.0 3.9 2,435.8 90.6
1/ Recurrent expenditure in the General Public Services sector excludes interest payments on loans.

Table 6.8 - Transactions in Nonfinancial Assets in the Core Budget
1389 1389 1390 1390 1390 1390 1390 Compa rison to
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 1389 YT D
Code In millions of Afghanis
Actual Actua l Pre lim Pre lim Pre lim Prelim
Qtr YT D Qtr Qtr Qtr YT D Change % Increa se
25 NET ACQUISIT ION OF NONFINANCIAL ASSET S 7,508.6 17,710.1 3,895.9 7,352.0 10,484.4 21,732.3 4,022.2 22.7
Land and Buildings 5,942.6 13,570.9 1,553.8 3,775.6 4,608.8 9,938.3 -3,632.6 -26.8
251/8 Purchase of Land and Buildings 5,956.5 13,666.1 1,576.5 3,784.5 4,618.7 9,979.7 -3,686.4 -27.0
150 Sale of Land and Buildings -13.9 -95.2 -22.7 -8.9 -9.8 -41.4 53.8 -56.5
151 Sale of State-Owned Enterprises 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N/A
252 Machinery and Equipment (>50,000) 691.9 1,294.6 224.0 1,298.7 1,774.8 3,297.5 2,002.9 154.7
257 Valuables 2.0 4.7 0.1 3.0 0.8 3.9 -0.8 -17.1
259 Other Acquisitions 872.1 2,839.8 2,118.0 2,274.6 4,100.0 8,492.6 5,652.8 199.1
Table 6.9 - Transactions in Financial Assets and Liabilities in the Core Budget
1389 1389 1390 1390 1390 1390 1390 Compa rison to
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 1389 YT D
Actua l Actua l Pre lim Pre lim Pre lim Pre lim
Qtr YT D Qtr Qtr Qtr YT D Cha nge % Incre a se
3+4 T R AN SACT ION S IN FIN AN CIAL ASSET S AN D
LIABILIT IES -2,603.5 -16,031.6 -17,212.2 4,931.6 5,228.9 -7,051.7 8,979.9 -56.0
3 N ET ACQU ISIT ION OF FIN AN CIAL ASSET S -4,426.9 -19,713.4 -15,448.0 3,327.9 2,474.3 -9,645.8 10,067.6 -51.1
D ome stic -4,426.9 -19,713.4 -15,448.0 3,327.9 2,474.3 -9,645.8 10,067.6 -51.1
Currency and Deposits -5,279.6 -16,970.7 -7,794.5 -287.8 4,609.8 -3,472.5 13,498.2 -79.5
311 Treasury Single Account -4,239.6 -15,887.8 -5,438.5 -4,029.5 4,778.3 -4,689.6 11,198.2 -70.5
313 Donor Accounts -693.7 -531.9 -2,447.7 4,084.5 797.6 2,434.4 2,966.3 -557.7
314/90 Other Deposit Accounts (1) -346.3 -551.0 91.7 -342.8 -966.2 -1,217.3 -666.4 120.9
317 Loans -38.1 246.4 17.9 1.2 1.8 21.0 -225.4 -91.5
319 Other Accounts Receivable 774.3 577.5 367.4 -42.6 378.6 703.4 125.8 21.8
Other Assets 116.5 -3,566.7 -8,038.8 3,657.1 -2,516.0 -6,897.7 -3,331.0 93.4
Fore ign 0.0 0.0 0.0 0.0 0.0 0.0 0.0 N /A
4 N ET ACQU ISIT ION OF LIABILIT IES 1,823.4 3,681.8 -1,764.2 1,603.7 2,754.6 2,594.1 -1,087.7 -29.5
D ome stic 1,238.0 1,687.2 -1,843.1 1,020.9 1,576.2 754.1 -933.1 -55.3
411 Accounts Payable -23.5 -14.0 7.1 -18.8 60.9 49.2 63.2 -451.0
413 Pension Liabilities 4.7 9.9 3.1 -2.7 3.9 22.2 12.2 122.9
423 Other Payables 1,001.1 1,433.6 0.0 850.1 1,133.9 1,984.0 550.4 38.4
451 Other Liabilities (1) 255.7 257.6 -1,853.3 192.4 377.5 -1,283.4 -1,541.0 -598.2
Fore ign 585.4 1,994.7 78.9 582.8 1,178.4 1,840.0 -154.7 -7.8
431 Foreign Currency -10.6 5.6 -4.9 -8.8 -57.9 -71.6 -77.2 -1,377.3
181-2 Loans 596.0 1,989.1 83.8 591.6 1,236.3 1,911.7 -77.4 -3.9
1. Deposits on Letter of Credits (321) are netted out with Letter of Credit Commitment Accounts (451). The net amount is included under either 'Other Deposit Accounts' or ' Other Liabilities' depending on the direction of net
transactions during the period.

Table 6.10 Alternative Measures of Deficit/Surplus and Financing in the Core Budget
1389 1389 1390 1390 1390 1390 1390 Compa rison to
Qtr 3 Qtr 3 Qtr 1 Qtr 2 Qtr 3 Qtr 3 1389 Y T D
Actua l Actua l P re lim P re lim P re lim P re lim
Qtr YT D Qtr Qtr Qtr YT D Cha nge % Incre a se
T R AN SACT ION S AFFE CT IN G N E T W OR T H
1 Revenues including Grants 40,146.6 116,664.6 45,401.7 42,452.2 48,973.2 136,827.1 20,162.5 17.3
2-25 Expenditures (Recurrent) 30,262.9 82,926.2 24,293.6 40,031.8 43,719.3 108,044.7 25,118.5 30.3
23 Interest 34.8 72.2 37.5 7.2 39.7 84.5 12.3 17.0
N e t Ba la nce (1-2-25) 9,883.7 33,738.4 21,108.1 2,420.4 5,253.9 28,782.4 -4,956.0 -14.7
Prima ry Ba la nce (1-2-25+23) 9,918.5 33,810.6 21,145.6 2,427.6 5,293.6 28,866.8 -4,943.8 -14.6
T R AN SACT ION S IN N ON FIN AN CIAL ASS E T S
25 Net Acquisition of Nonfinancial Assets 7,508.6 17,710.1 3,895.9 7,352.0 10,484.4 21,732.3 4,022.2 22.7
N e t Le nding-Borrowing (1-2) 2,375.2 16,028.3 17,212.2 -4,931.6 -5,230.5 7,050.1 -8,978.3 -56.0
Fina ncing (3+4+5) -2,375.2 -16,028.3 -17,212.2 4,931.6 5,230.5 -7,050.1 8,978.3 -56.0
T R AN SACT ION S IN FIN AN CIAL ASS E T S AN D LIABILIT IE S
3 Net Acquisition of Financial Assets -4,426.9 -19,713.4 -15,448.0 3,327.9 2,474.3 -9,645.8 10,067.6 -51.1
4 Net Acquisition of Financial Liabilities 1,823.4 3,681.8 -1,764.2 1,603.7 2,754.6 2,594.1 -1,087.7 -29.5
5 R E T AIN ED E AR N IN GS 228.3 3.3 0.0 0.0 1.6 1.6
D iscre pa ncie s (Fina ncing-3-4-5) 0.0 0.0 0.0 0.0 0.0 0.0

7 Glossary
Budget An itemised summary of estimated intended expenditures for a given period along with proposals for
financing them.
Operating Budget The budget for operating budget expenditures. These are mainly recurrent expenditures, and include
wages and salaries for all public servants, running costs for Ministries, schools, barracks etc. A small
amount of capital expenditure is also included in the Operating Budget in Afghanistan. The Operating
Budget is sometimes referred to as the Recurrent Budget in other countries.
Development Budget The Government budget for development projects implemented by Government agencies. It contains
recurrent and capital expenditure in Afghanistan. These projects are mainly donor funded. The
Development Budget is sometimes referred to as the Capital Budget in other countries.
Core Budget The operating budget plus the development budget
External Budget The budget for all donor activities that are funded directly by donors, rather than channelling the funding
through the Government
Integrated Budget The core budget plus the external budget
Expenditure/Expense The purchase of goods, services, assets. It also includes interest payments, and subsidies and transfers.
Recurrent spending Expenditure that is ongoing rather than one off, and does not result in the acquisition of a fixed asset. For
example payments for electricity or fuel, the payment for salaries etc. Often equated with the operating
budget, however development budget spending contains recurrent items and vice versa
Capital spending Spending on a capital asset, for example a tractor or irrigation pump.
Compensation of The total remuneration, in cash or kind, payable to an employee for work done during the accounting
Employees period. It consists of wages, salaries, and social contributions made on behalf of employees to social
insurance schemes. Excluded are amounts paid to contractors, self-employed outworkers, and other
workers who are not employees.
Goods and Services (use Expenditure items such as electricity costs, maintenance and repair, consultancy services and items with a
of) purchase value below Afs 50,000
Subsidies Payments made to State Owned Enterprises to help them cover their costs
Transfers Payments to a person or organisation for which no service is received, for which pension payments and
subsidies.
Interest payments The interest paid on outstanding loans
Contingency Funds Items listed in the operating and development budgets that may require funding. Throughout the year,
funding from contingency reserve items may be allocated to the budgets of budgetary units during the
year (increasing their original budget).
Assets An entity over which ownership rights are enforced, and from which economic benefits may be derived by
its owners by holding it or using it over a period of time.
Non-financial assets Physical assets such as real estate and machinery
Financial assets A financial claim on an asset that is usually documented by some type of legal representative. Examples
include bonds and shares of stock, but not tangible assets such as real estate or gold. These are included
below the line as financing items.
Revenues Domestically raised revenues and donor grants (excludes loans).
Domestic Revenues Revenues raised by the Government of Afghanistan (excludes donor grants). These are mainly revenues
raised by the Afghanistan Revenue Department (taxes, customs duties etc.), and revenues rose by other
Government agencies (fees and fines etc.)
Grants Funds received from donors. Often the money can only be spent on a certain project or activities, but
sometimes can be spent at the discretion of the recipient Government
Balances The difference between revenues and expenditures
Operating Budget Balance Domestic revenues (excluding donor grants to the operating budget) minus operating budget expenditures
(excluding grants)
Operating Budget Balance Domestic revenues plus donor grants to the operating budget, minus operating budget expenditures
(including grants)
Development Budget Donor Grants to development budget minus development budget expenditures
Balance
Core Budget balances
Balance (excluding and Total revenues (excluding and including grants) minus total expenditures
including grants)
Net operating balance Revenues (including donor grants) minus recurrent expenditures. It measures the change in net worth
(Table 6.10) resulting from transactions (excluding capital expenditure)
Primary operating Net operating balance plus interest expenditures
balance (Table 6.10)
Surplus A positive balance (revenues are greater than expenditures)

Deficit A negative balance (revenues are less than expenditures)
Financing How the government funds its deficit (or invests its surplus). For example drawing down on foreign loans
or withdrawing funds from the Central Bank. More generally, it describes transactions in financial assets.
Above the line Refers to real expenditure and revenue activities, for example the paying of salaries, the purchase of
school books, the building of a dam etc.
Below the line Refers to financing transactions, and transactions in financial assets, for example loan disbursements and
repayments, transactions on the Treasury Single Account
Loans Loans of money from foreign Governments, international organisation and development banks.
Afghanistans debt strategy allows only concessional loans to be taken out.
Concessional loans Loans that are offered at below market rates (e.g. a low interest rate and with a long grace period).
Principal repayment Repayment of the principal of a loan (as distinct from an interest payment)
Gross Domestic Product The value or all the goods and services produced by a country in one year. This excludes the opium
economy for Afghanistan
Budget target The level of revenue or expenditure expected over a quarter or during the year. For expenditures we
assume that the budget target for the quarter is 25% of the annual budget
Budget variance The difference between the actual outcome and the budget target
Treasury Single Account The main bank account of the Government. In Afghanistan, the TSA consists of the Afghani account, the
(TSA) US dollar account, provincial revenue and expenditure accounts, and ARTF and LOTFA accounts.
AFMIS Afghanistan Financial Management Information System. The central database that records every
transaction made by Government
Eurotrace The computer database system for recording and classifying customs transactions.

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Foreword and Acknowledgement

Mohammad Mustafa Mastoor

1 SUMMARY OF FIRST QUARTER DEVELOPMENTS ................................................................. 3

Table 1.1 Budget Summary

Source: FPU using AFMIS data downloaded on the 7 March 2012

1.1 Overall Fiscal Position

Quarterly Fiscal Bulletin Page |3 Q3 - 1390

Domestic revenue collection has been above the

the same period in 1389. Most of the contribution in

were received in the 3rd quarter 1390. The operating 35.0

grant receipts were Afs 15.8 billion (7% of quarterly 30.0

(4% of quarterly GDP) during this period. This shows 20.0

that both operating grant and development grant 15.0

receipts increased by Afs 2.8 billion or (22%) and Afs 10.0

2.3 billion or (33.3%) over the same period receipts in 5.0

1389 respectively. Most of the increase in operating

Quarterly Fiscal Bulletin Page |4 Q3 1390

Figure 1.3 Operating Budget Figure 1.4 Development Budget

Quarterly Fiscal Bulletin Page |5 Q3 - 1388

Quarter Year to date

quarter of 1390 were financed using domestic

YTD Q3 1389, fiscal sustainability indicator has 20%

domestic revenues were faster than operating budget Q1

expenditures in the 3rd quarter. This was true, as

Quarterly Fiscal Bulletin Page |6 Q3 - 1390

Table 2.1 1390 Q3 revenues

GR AN T S (1) 19,623.4 58,971.9 22,111.9 18,621.4 24,809.0 65,542.3 6,570.3 11.1

2.1 Domestic Revenues

Quarterly Fiscal Bulletin Page |7 Q3 - 1390

10.0 8.1 8.5

AFMIS data extract 7 March 2012

2.2 Provincial Distribution of Revenues

Table 2.2 1390 Provincial Revenues

Quarterly Fiscal Bulletin Page |8 Q3 - 1390

Major increases in specific tax revenues

Quarterly Fiscal Bulletin Page |9 Q3 - 1390

Figure 2.4 - Customs revenues in 'top 5' provinces, Q3

Quarterly Fiscal Bulletin P a g e | 10 Q3 - 1390

2.6 Social Contributions

Quarterly Fiscal Bulletin P a g e | 11 Q3 - 1390

Total taxation collections by ARD (2) 15,732.6 19,354.5

Quarterly Fiscal Bulletin P a g e | 12 Q3 - 1390

Quarterly Fiscal Bulletin P a g e | 13 Q3 - 1390

Grants Revenue 19,676

Quarterly Fiscal Bulletin P a g e | 14 Q3 - 1390

Table 3.1 1390 Q3 expenditures

25 ACQU ISIT ION OF AS SE T S

1/ Interest Only. Does not include loan principal payments

3.1 Overview of Core Budget and Expenditures

allocated to the operating budget and the remaining 120.0

The aggregate YTD expenditure has increased in 3rd 80.0 76.5

quarter of 1390 to Afs 129.8 billion by about 28.9 58.3 60.7

Quarterly Fiscal Bulletin P a g e | 15 Q3 - 1390

Quarterly Fiscal Bulletin P a g e | 16 Q3 - 1390

transfers to municipalities. The transfer of social (Afsmillion) 9,736

benefits is directly linked with the implementation of 8,519

Operating expenditures on subsidies, grants and social 2,434 2,174

Acquisition of Non-Financial Assets

3.3 Operating Budget by ANDS Sector and Ministry

3.4 Development Budget by Economic Category

Acquisition of Non-financial Assets

(Afsmillion) 26,671 8,000

Goods and services

project management services and project financial assets