PEFA assessment – Afghanistan ranked higher than middle income countries
DFID (Department For International Development – UK)
April 11, 2008
Afghanistan now ranks higher than middle income countries in several key areas, according to the latest assessment into financial management systems undertaken by the PEFA group.
The latest 2008 Public Expenditure and Financial Accountability (PEFA) assessment is the second Public Financial Management (PFM) Performance Assessment for Afghanistan and is based on information as of December 2007 (two and half years after the first assessment of June 2005).
The comparison between the first and second assessment shows significant improvements within Afghan PFM systems. Out of total 28 performance indicators, 17 indicators improved and four deteriorated, while seven remained unchanged. Among three donor practice indicators, two deteriorated and one remained unchanged.
Based on these results, Afghanistan has beaten the average for those middle income countries that have undertaken PEFAs to date. Some of these countries include:
* Trinidad and Tobago (upper middle)
* St Vincent and the Grenadines (upper middle)
* Albania (lower middle)
* Armenia (lower middle)
* Dominican Republic (lower middle)
* Serbia (lower middle)
* Vanuatu (lower middle)
* Ukraine (lower middle)
The PEFA also tells us that there have been improvements in making the budget transparent and accessible to Afghan citizens. Externally Audited reports have been presented to and discussed in Parliament.
This will help strengthen donor confidence in putting more resources through the national budget in support of the Government’s development priorities and will help to strengthen ownership of the development agenda and build greater Government capacity to deliver basic services.
DFID Afghanistan has contributed to this positive development through our engagement with the Ministry of Finance. Our various technical assistance programmes in the revenue and budget departments have provided valuable technical advice and capacity building support on budgetary reform and tax administration.
In addition, recent reports by the International Development Committee and the National Audit Office are supportive of DFID’s practice of channelling aid money through government systems, which in DFID Afghanistan has been instrumental in improving the ability of the Government to own the process of reconstruction and development.