MBAW First Quarter Progress Report 2015

01 Apr 2015


UNDP MBAW Project provided extensive support and technical assistance to the Ministry of Finance (MoF), Line Ministries (LMs) and sub-national institutions in preparing the 1394 National Budget. To ensure the 1394 budget is comprehensive and policy based, the project supported the Budget Directorate (BD) of the MoF to organize budget hearings in order to discuss and scrutinize budget allocations and ensure alignment with national development agendas. Upon approval of the FY 1394 budget, the project team provided support to various units of MoF in holding budget execution training sessions for the representative of all 56 budgetary units of the GoIRA. A total of 350 personnel from LMs and budgetary units attended these workshops. Similarly, the Budget Execution Workshop was also held for the 90 Directorate General Budget of the Ministry of Finance (DGB) staff members at the MoF. 

During the reporting period, project’s Budget Reform team provided support in the final revision of the 1394 national budget document – the revised version (2nd draft) included information on budget reforms, program budget table, translations and was sent to the parliament. Similarly, the team finalized the Public Budgeting (PB) Steering Committee ToRs (both in Dari and English) for Deputy Ministerial and Director General Levels, and shared them with the senior management of MoF for their comments and approval. 

During the reporting period, MBAW project’s Infrastructure and Natural Resources team analyzed the financial plans of the LMs that are engaged in infrastructure sector. The finalized document was shared with the treasury department. In addition the Infrastructure and Natural Resources team closely worked with Ministry of Public Works, AMEC consultancy and USAID on the establishment of road fund, road authority and a transport institute. 

During the reporting period, the Budget Policy and Reporting team of the project provided support to MoF in the timely dissemination of the approved National Budget Law to all relevant budgetary units and the relevant administrations. Similarly, it provided support in the finalization of the 1395 Budget Timetable and its dissemination. 

With the support of the project, a total of 1694 allotment forms of development budget were issued. This can be translated as a 2 % expenditure rate of the development budget. Out of the mentioned percentage, the discretionary budget execution rate is 3.3 % and non-discretionary budget execution rate is 1.66 %. Operating budget allotments and special cods adjustment forms were accurately processed throughout the 1st quarter of FY 1394 and as a result the expenditure rate rose up to 10 %. It is mentionable that the overall expenditure rate for both development and operating budget is (7.5%). 

The Annual Government Performance Report for fiscal year 1393 was prepared and officially shared with the state ministry of parliamentary affairs for onward submission to Budget Committee of National Assembly. The report contains both financial and non-financial (performance) information for 25 BU’s for the FY 1393. It is worth mentioning that during the first quarter of the FY1394, the Government Performance Reporting Reform expanded to additional 10 Line Ministries and agencies. 

During the reporting period, the project assisted MoF directorates in preparing FY 1394 action plans and procurement plans. In addition, the project is assisting the ministry in developing monitoring tools, for the action plans and procurement plans to insure timely implementation of the plans. 

Finally, despite the critical role played in the ministry, the current phase of the project will complete by the end of June, 2015. However, future of the project remains uncertain because of lack of interested from the stakeholders to come up with a long term solution to the sustainability issues of the project functions. 

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