Afghanistan's Finance Ministry prepares state's first budget in 20 years without foreign aid

  • 12/19/2021
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The Ministry of Finance in the Islamic Republic of Afghanistan, represented by the Taliban government, announced that it has prepared the state"s first budget project in 20 years without foreign aid. The budget"s preparation announcement came alongside with a deep economic crisis for Afghanistan that could transfer to humanitarian crisis, as the World Food Programme (WFP) warned of a possibility of famine in the country. According to the Agence France-Presse (AFP) the Finance Ministry spokesman Ahmad Wali Haqma has not specified the budget"s value yet, as it will cover up the period until December 2022, but he said the Afghan government is supposed to approve the budget before publishing it. Wali Haqma earlier stated that they were trying to finance the budget from their local income, as he said that he believes that they could do it. Spokesman Wali Haqma admitted that the employees" salaries were delayed for several months, and stated that they are doing their utmost best to settle the arrears before the end of the year. He added that they are preparing a new salary scale. Wali Haqma introduced a new tax to finance special projects to help orphans and poor people. Afghanistan"s budget for 2021, which had been set up by the previous regime under the supervision of the International Monetary Fund (IMF), was made up of 219 billion Afghanis (1.75 billion euros at the current exchange rate), as it was formed with foreign aid and a revenues of 217 billion Afghanis. Meanwhile, the exchange rate was close to 90 Afghanis to one euro, as the local currency has continued to decline since the Taliban"s return. Last Friday, the euro price reached more than 120 Afghanis. The Taliban government"s Revenue Department said in November, it had collected 26 billion Afghanis in the past two and a half months, as well as 13 billion from the customs duties, while an Afghan economist said that the new budget for Afghanistan is supposed to represent only a quarter of last year"s budget. It is noteworthy that the foreign aid to Afghanistan was suspended after the Taliban returned to its power last August, as the Western countries froze billions of dollars in assets abroad belonging to the Afghan nation.

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