Development Cooperation Report 2012 - UNDP Afghanistan

22
SUPPORT TO GOVERNMENT OPERATING BUDGET
A notable amount of external assistance (USD 1,481 million) channeled through the
government budget in 2011 was provided to finance the operating budget. Although
domestic revenues’ contribution to support the government operating budget has
been crucial, there have been other sources that have supported the operating budget
significantly. In 2011 alone, the U.S. Department of Defense and DPs’ support through
LOTFA have been two of the largest sources of support to operating budget, whilst
ARTF’s support to government operating budget, based on the agreed ARTF financing
strategy, has slightly decreased compared to 2009 and 2010, and will further reduce
in the future [Figure 16]. For more details, refer to [Table 15] in Annex of this report.
Figure 16: Major Supporters of the Government Operating Budget
1600
1400
1200
DEVELOPMENT COOPERATION REPORT
$Millions
1000
USDOD
800
LOTFA
600
ARTF
400
200
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
SHARE OF AID AS PERCENTAGE OF GOVERNMENT BUDGET
As stated above, the Afghan national budget has been supported by both domestic
revenues and DPs’ assistance, and will continue to be so in future. Notably, the amount
of domestic revenue in support of the government budget has increased from USD
382 million in 2003 to USD 1,466 in 2010. In the year 2011, the domestic revenue has
increased again due to various initiatives in the mining and other revenue generating