Reforms increase state revenues in Afghanistan

Afghanistan's Minister of Finance, Omar Zakhilwal

As President Hamid Karzai wraps up his trip to China after securing deals to further economic ties between China and Afghanistan, the Finance Ministry of Afghanistan, headed by Omar Zakhilwal, announced today that the state’s budget revenues rose by 45% last year. Domestic revenues grew from $400 million in 2008-2009 to about $600 million in the fiscal year that ended this week.

A Ministry of Finance spokesman told the media that the rise was a result of reforms they had implemented, such as improvements in revenue collection, a decrease in fines to further encourage compliance with tax laws, and implementing a tax on the income of state employees and on property leases. The Ministry spokesman also said that a serious of anti-corruption measures, especially in the customs area, also contributed to the rise in revenues.

This is very good news for Afghanistan, because if the rise in revenues continues to grow, it will be less dependent on foreign aid to provide services such as the building and maintenance of schools, hospitals, roads, and funding for the country’s armed forces and police services.

March 25, 2010 · admin · No Comments
Posted in: Afghanistan's Economy, Reconstruction and Development