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Afghanistan: Public Financial Management Performance Assessment - an Executive Summary
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This paper presents an assessment of the performance of Afghanistan's Public Financial Management (PMF) systems. The assessment is based on a performance measurement framework developed by the Public Expenditure and Financial Accountability (PEFA) partnership program, which identifies a set of critical objectives of a PFM system and a standard set of high-level PFM indicators to assess performance against the objectives. The 28 PEFA indicators of PFM performance are structured in three categories namely: (A) PFM out-turns; (B) Key cross-cutting features; and (C) Budget cycle.
In addition, three indicators relate to donor practices. This methodology provides a consistent framework for analysis and a monitoring tool for the government to manage reform and demonstrate progress to domestic and international stakeholders.
The report depicts significant positive developments in Afghanistan’s PFM system since the 2005 PEFA-based PFM review. The comparison with other countries also shows that the PFM system in Afghanistan performs relatively well. Nevertheless, a number of weaknesses exist which must be addressed, including areas where progress in improving the PFM system and processes has been slow.