Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

Islamic Republic of Afghanistan - Enhanced Integrated Framework ... Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

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ROLE OF THE MTFFThe three year Medium Term Fiscal Framework(MTFF) will continue to provide the resourceframework. The MTFF allows the Governmentto put in place an affordable, realisticand sustainable medium-term fiscal frameworkto ensure (i) transparency in setting fiscal objectives;(ii) stability in fiscal policy-making process;and (iii) efficiency in design and implementationof fiscal policies.The MTFF will be essential planning tool toimplement ANDS and evaluate impacts of itspolicies. Through the MTFF the ANDS prioritieswill be considered in yearly budgeting:within the limits of the capacity, the MTFF willensure that the ANDS implementation will becoordinated with the budget preparations.Based on this the MoF plans to embark on theprocess of developing the Medium-Term ExpenditureFramework (MTEF) to strengthenthe Governments capacity for expenditureplanning.ROLE OF THE CONTROL ANDAUDIT OFFICE (CAO)The role of the Control and Audit Office (CAO)will be strengthened to provide oversight of theexpenditure functions of core spending ministries.However, given the CAO’s current weakcapacity, the MoF will assume these responsibilitiesin the short term.Budget management framework, prioritizationand funding requirements for theimplementation of the ANDSThe Medium Term Fiscal Framework and sectorwide programming and costing will (i)strengthen realistic resource projections; (ii)sectoral prioritization; (iii) support fiscal sustainability,and (iv) develop budget ceilings forall budget entities. Table 10.5 below provides ahigh level sectoral overview of the projectedsectoral costs for the period 1386 to 1391 (2007-2012).As afore-mentioned, the implementation of theANDS will be aligned with the Government’scommitments toward the PRGF and HIPC. TheGovernment expenditure prioritization frameworkwill ensure that proper resource allocationwill be made to support implementationof these commitments and if necessary appropriateadjustments will be done.Table 10.5. Projected Operating and Development Spending (US$ m) 1387-1391 60Sector1387 1388 1389 1390 1391 TotalUS$m US$m US$m US$m US$m US$mSecurity 3219 2585 2679 2790 2906 14179Infrastructure & Natural Resources 1781 3093 3681 4180 4451 17185Agriculture and Rural Development 829 921 916 909 912 4486Education and Culture 742 893 980 1077 1181 4872Good Governance, Rule of Law and Human374 558 640 685 728 2985RightsHealth and Nutrition 325 465 530 563 595 2478Economic Governance & PSD 237 215 230 244 260 1186Social Protection 192 359 394 421 449 1815Others 205 198 185 170 157 915Total 7,903 9,286 10,236 11,038 11,637 50,10060 Source: Ministry of Finance, April 2008The total estimated cost of the ANDS over thenext five years (1387-1391) is $50.1 billion. Ofthis amount the Government will contribute$6.8 billion and external assistance is expectedto be $43.2 billion.172Afghanistan National Development Strategy (ANDS)

NATIONALIMPLEMENTATIONSTRUCTURESAt the national level, the following structureslink policy, planning, budgeting and monitoringof the ANDS:To facilitate coordination, 17 Inter-MinisterialCommittees (IMCs) will be established, eachresponsible for overseeing the implementationof an ANDS sector strategies. The membershipof these bodies will include the ministers fromthose ministries with responsibility in the particularsector. The IMCs will report regularlyto the President and Cabinet and to the JCMBthrough the Oversight Committee. The IMCswill be coordinated by the ANDS OversightCommittee and supported by the JCMB Secretariat.The line ministries and other governmentagencies will be responsible for the implementationof the ANDS (program and projects)with support from the Ministry of Finance, IndependentAdministrative Reform and CivilService Commission (IARCSC) and internationalpartners.The National Assembly will be responsible forlegislating an enabling environment for security,economic growth and poverty reduction.Parliamentarians and committees are alreadyactively engaged in the formulation of theANDSThe Council of Ministers headed by the Presidentas the highest level decision-making body,will oversee the progress and provide overallpolicy guidance and direction under existinglegislation.The ANDS Oversight Committee as high levelbody comprised of senior ministers will overseethe implementation of the ANDS and reportabout the progress directly to the Presidentand the Cabinet. 61MoF will be responsible to ensure that the programsand projects of the line ministries will becosted, prioritized against the fiscal framework,sequenced and integrated into the MTFF andthe Budget.SUB-NATIONALIMPLEMENTATIONSTRUCTURESAt the sub-national level, the following structuresare to be established to enhance the linkbetween policy making, planning, and implementationof the PDPs, budgeting and monitoring:The Independent Department for Local Governance(IDLG), under the President’s Office,will be responsible for the overall coordinationof local governance and all provincial governorswill report to it on the progress of the implementationof the ANDS.At the provincial level, the Provincial Councils,Provincial Development Committees and ProvincialGovernors will be directly involved inthe implementation of the ANDS. The provincialdepartments of the line ministries will beresponsible for implementation of the subnationalprojects. At district and communitylevels the District and Community DevelopmentCouncils (DDCs, CDCs) will continue toplay key role in implementation of the communitylevel projects under the overall leadershipof the Wuluswal..COORDINATIONSTRUCTURESThe Government and the international communityhave established the Joint Coordinationand Monitoring Board (JCMB), with responsibilityfor overall strategic coordination andmonitoring of the implementation of the AfghanistanCompact.61 This mechanism has been very effective for formulation ofMillennium Development Goals (MDGs) for Afghanistan, developmentof Afghanistan Compact and Interim Afghanistan NationalDevelopment Strategy (I-ANDS), prioritization of variousprograms and projects, and approval of policies and decisions.The effectiveness of this mechanism is supplemented by the factthat the Senior Economic Advisor to the President is also a co-chair of the Joint Coordination and Monitoring Board (JCMB),which is mainly responsible for coordination between the governmentand the international community. The members of theOversight Committee are also members of JCMB. This mechanismwill be a very important implementation mechanism forANDS because of its past experience, criticality and positioning.Implementation Framework 173

NATIONALIMPLEMENTATIONSTRUCTURESAt the national level, the following structureslink policy, planning, budgeting and monitoring<strong>of</strong> the ANDS:To facilitate coordination, 17 Inter-MinisterialCommittees (IMCs) will be established, eachresponsible for overseeing the implementation<strong>of</strong> an ANDS sector strategies. The membership<strong>of</strong> these bodies will include the ministers fromthose ministries with responsibility in the particularsector. The IMCs will report regularlyto the President and Cabinet and to the JCMBthrough the Oversight Committee. The IMCswill be coordinated by the ANDS OversightCommittee and supported by the JCMB Secretariat.The line ministries and other governmentagencies will be responsible for the implementation<strong>of</strong> the ANDS (program and projects)with support from the Ministry <strong>of</strong> Finance, IndependentAdministrative Reform and CivilService Commission (IARCSC) and internationalpartners.The National Assembly will be responsible forlegislating an enabling environment for security,economic growth and poverty reduction.Parliamentarians and committees are alreadyactively engaged in the formulation <strong>of</strong> theANDSThe Council <strong>of</strong> Ministers headed by the Presidentas the highest level decision-making body,will oversee the progress and provide overallpolicy guidance and direction under existinglegislation.The ANDS Oversight Committee as high levelbody comprised <strong>of</strong> senior ministers will overseethe implementation <strong>of</strong> the ANDS and reportabout the progress directly to the Presidentand the Cabinet. 61MoF will be responsible to ensure that the programsand projects <strong>of</strong> the line ministries will becosted, prioritized against the fiscal framework,sequenced and integrated into the MTFF andthe Budget.SUB-NATIONALIMPLEMENTATIONSTRUCTURESAt the sub-national level, the following structuresare to be established to enhance the linkbetween policy making, planning, and implementation<strong>of</strong> the PDPs, budgeting and monitoring:The Independent Department for Local Governance(IDLG), under the President’s Office,will be responsible for the overall coordination<strong>of</strong> local governance and all provincial governorswill report to it on the progress <strong>of</strong> the implementation<strong>of</strong> the ANDS.At the provincial level, the Provincial Councils,Provincial Development Committees and ProvincialGovernors will be directly involved inthe implementation <strong>of</strong> the ANDS. The provincialdepartments <strong>of</strong> the line ministries will beresponsible for implementation <strong>of</strong> the subnationalprojects. At district and communitylevels the District and Community DevelopmentCouncils (DDCs, CDCs) will continue toplay key role in implementation <strong>of</strong> the communitylevel projects under the overall leadership<strong>of</strong> the Wuluswal..COORDINATIONSTRUCTURESThe Government and the international communityhave established the Joint Coordinationand Monitoring Board (JCMB), with responsibilityfor overall strategic coordination andmonitoring <strong>of</strong> the implementation <strong>of</strong> the <strong>Afghanistan</strong>Compact.61 This mechanism has been very effective for formulation <strong>of</strong>Millennium Development Goals (MDGs) for <strong>Afghanistan</strong>, development<strong>of</strong> <strong>Afghanistan</strong> Compact and Interim <strong>Afghanistan</strong> NationalDevelopment Strategy (I-ANDS), prioritization <strong>of</strong> variousprograms and projects, and approval <strong>of</strong> policies and decisions.The effectiveness <strong>of</strong> this mechanism is supplemented by the factthat the Senior Economic Advisor to the President is also a co-chair <strong>of</strong> the Joint Coordination and Monitoring Board (JCMB),which is mainly responsible for coordination between the governmentand the international community. The members <strong>of</strong> theOversight Committee are also members <strong>of</strong> JCMB. This mechanismwill be a very important implementation mechanism forANDS because <strong>of</strong> its past experience, criticality and positioning.Implementation <strong>Framework</strong> 173

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