Making Budgets and Aid Work (MBAW)

UNDP Afghanistan : Regular policy consultations are held with stakeholders in the government and members of civil society.

After a decade of reconstruction efforts and security assistance supported by the international community, Afghanistan now faces a transition involving elections, the withdrawal of international military forces by the end of 2014 and an expected decline of aid.  As external assistance decreases, the demand on domestic revenue and budget spending will grow. This underlines the need to improve public financial management systems and controls and to support a solid Afghan budget process to assist national political agendas and priorities.

Afghanistan ís fiscal and budgetary performance has been encouraging. Revenue grew from 3 percent of GDP in 2002/03 to 11 percent in 2010/11. Solid public financial management systems have been introduced and strengthened, while fiscal discipline has been maintained.

However there are gaps in the efficient allocation of funds from Kabul to the provinces.  Centrally, budget execution rates of the development budget were 49 percent in 2012, the consequence of unrealistic budget formulation, large budget carryovers from previous years, as well as deteriorating security in parts of the country and limited government capacity to implement projects on time.

Enhancing government capacity and investing in line ministry capacity for budget management appear as a key priority.


UNDP’s Making Budgets and Aid Work (MBAW) project provides technical assistance to the Ministry of Finance (MoF) to develop institutional capacity for improved budget planning and management, policy and strategy development, including aid coordination, for better service delivery. The project strengthens the link between the Afghanistan National Development Strategy, the National Priority Programmes and the national budget.

The project is embedded within the Ministry of Finance and provides technical assistance to:

  • Help establish an effective, accountable and transparent public financial administration at the national and sub-national levels.
  • Strengthen and promote budget planning as a tool to coordinate international development assistance and improve alignment and harmonization of external aid through core budget formulation, planning and execution; as well as external aid budget coordination and management.
  • Strengthen technical and professional capacity related to budget planning, allocation, and accountability of departments within the Ministry of Finance, line ministries and sub-national institutions.

What we have accomplished so far?

  • Improved preparation of the yearly national budgets that is comprehensive, organized, policy-based and supportive of the national development strategy.
  • Strengthened MoF’s public financial management capacity: according to the latest Public Expenditure and Financial Accountability assessment conducted by the International Monetary Fund (IMF), the MoF scores higher than other fragile and Middle Income Countries in terms of public expenditure management capacity. 
  • Budget transparency improved to 59 percent as reported in the Open Budget Index for 2012 compared to 8 percent budget transparency in 2008 and 21 percent in 2010.
  • Improved service delivery through sub-national financing on the preparation of the Provincial Budgeting New Approach policy paper and the pilot testing of Provincial Budgeting Reform.
  • More than 1.5 billion US dollars raised for the national programmes through donor consultations. 
  • More accurate resource allocation for line ministries and increased timely service delivery following MoF’s rolling out of public financial management reforms such as Performance Budgeting and the State Budget Planning System.
  • Improved monitoring by MoF of the commitments from the Tokyo Mutual Accountability Framework, notably in terms of harmonization and alignment rules.

Who Finances it?

Donor name

Amount contributed per year in US$


Government of United States of America



Government of Japan



Government of United Kingdom


Delivery in previous fiscal year in US$

Dec 2014


Dec 2013


Dec 2012


Dec 2011


At a Glance
Start Date:
April 2007
End Date:
December 2013
Focus Area
Good governance, peace and stability
Geographic coverage
National level (with some activities in the provinces)
Implementation Modality:
Direct Implementation
Total Budget:
USD $33.3 million
Donors (cost-sharing):
Japan, Canada, Germany, DFID, UNDP
Project Manager
Mr. Bissmilah Maiwand Akbari Wardak
Government Partner:
Ministry of Finance
Open Data

Detailed information MBAW and 6,000+ UNDP development projects in 177 countries and territories worldwide.

MBAW Project Summary

The Project Summary of Making Budgets and Aid Work (MBAW) covers in a two-page PDF document the issues, responses and achievements of this UNDP project in Afghanistan.

Project Documents