ECONOMY

Ubaid OKIMBEKOV

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Ubaid Okimbekov, Ph.D. (Econ.), lecturer, Khorog State University named after M. Nazarshoev (Khorog, Tajikistan)

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The Afghan economy in 2006 was generally characterized by trends recorded after the fall of the Taliban regime. Thus, most of the financial aid over the past five years has been going into the development of the economic infrastructure, but since the degree of destruction of the transport and energy networks was very great, these sectors are still regarded as the main obstacle to economic recovery.

Budget revenues (including revenues from own sources) and, accordingly, public expenditures for the development of the economy have been growing every year. The Afghan budget consists of two parts: a core budget (domestic revenues and donor assistance channeled through government accounts) and an external budget (donor assistance outside government accounts). Operating budget expenditure (part of the core budget) for 2006 was projected at 40,346 million afghanis ($831.8 million), with a 17% increase from 2005; and core development budget expenditure, at 66,578.86 million afghanis ($1,372.76 million). Domestic revenues were expected at around 25,220 million afghanis ($520 million).

The structure of the 2006 core development budget shows the country’s priorities: almost half of the total (47%) was allocated for the development of the infrastructure and natural resources, 25% for agriculture and rural development, 7% for education, 6% for health, 6% for good governance, rule of law and protection of human rights, and 5% for security. The expenditure structure of the external budget was……………

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