Making Budgets and Aid Work Project (MBAWP) Monthly progress Update October 2011

1. Making Budgets and Aid Work Project (MBAWP) Monthly progress Update October 2011

2. Outline • Achievements • Advocacy and Communication • Budget Status –October 31, 2011 • Human Resource Status • Challenges • Priorities for November 2011

3. Component 1Achievements: Budget Planning and Management • All technical staff from 19 line ministries and budgetary units learn to prepare reports showing variances from original plans to improve the budget formulation process of 1391 Expected Impact: Strengthened budget formulation and accurate planning based on findings and challenges identified in these reports • Over 150 technical staff of central pilot ministries and IDLG learn to prepare action plans to support provincial departments in budget preparation and fair resource allocation, through the BC2 workshop Expected Impact: Effective sub national financing and deconcentration of authority to provinces improving service delivery • Over 200 provincial staff from 5 pilot departments learn about provincial budgeting, resource allocation, costing, and prioritizing through the BC1 Regional Workshop conducted in (Badakhshan, Takhar, Kundoz, Baghlan, Samangan, Mazare- sharif, Jawazjan, Sarepul, and Faryab)

4. Continued Expected Impact: Stronger understanding of government sub-national policies, priorities and improving coordination between LMs and provincial departments • Budget circular 2 improved to integrate pro-poor budgeting, gender responsive budgeting for 7 pilot ministries and address cross cutting themes i.e. gender Expected Impact: Development and economic sustainability of the country • Checklist and guidelines developed in a manner to promote successful completion and analysis of the BC2 submissions Expected Impact: Effective and realistic budget planning and delivery • Domestic revenue mobilization process improved through the the IMF Extended Credit Facility Program Expected Impact: Increasing economic sustainability and strengthening poverty reduction growth strategies

5. Component 2Achievements: Development strategies and policies & aid coordination • 7 NPPs unconditionally endorsed at JCMB to increase socio-economic development and improve human rights situation of all Afghans • Development of the Operational Guide expected to improve alignment of off-budget financing with national priorities, thus increasing aid effectiveness Expected Impact: Increasing on budget donor commitments for reconstruction of the Afghan Government • Ten pilot off-budget projects with over USD 5 million budget identified, to use the OG to improve aid delivery of externally financed development programs • MoF participation in High-level symposium in Luxembourg to increase donor engagement for ODA for countries with poor capacity to attract private direct investment and speed the process of meeting development goals Expected Impact: Poverty reduction and improving socio-economic sustainability

6. Continued • On –budget donor funding and Reconstruction of Afghanistan to be further strengthened by the signing of the Grant agreement with Government of Japan and GoA for an amount of USD 21 million • Coordination of External Funding in line with Paris Declaration improved for infrastructure development through the signing of the grant agreement between ADB and GoA for an amount of ADB USD 222 million • “Afghanistan Aid Bulletin” prepared to raise awareness among donors on foreign aid and the progress of the GoA in achieving agreed global aid benchmarks • Designing, planning and costing of NPP2, 3, 4, 5 to improve Sectoral Programming guided by priority needs and for securing donor financing for their implementation after endorsement • Expected Impact: Poverty reduction and improving human and social development • Technical support on preparation of 100 Day NPP Reports, Action Plans and Transition packages for each of the 6 NPPs provided to LMs to strengthen monitoring system and measure achievements of ANDS sector strategy objectives and outputs

7. Component 3Achievements: Delivery management and sustainable capacity development • At the BC 2 workshop 230 technical staff from LMs/ BUs and ANDS sectors learn to prepare budget submissions to ensure that it reflects an equitable allocation of resources among provinces and is gender balanced • Expected Impact: Improving capacity development and delivery management • Guidance and support provided to LMs on budget hearing mechanisms, formats and submissions to render the budget Execution process more efficient and effective • System/database for tracking allotments and contracts updated and appropriately positioned within Budget Department and MoF relevant departments to enhance budget execution delivery • Action plan and strategy for LMs to improve low execution rate of development projects developed at the joint coordination meeting with 14 Ministries led by MoF. • Budget execution process strengthened through the monitoring of 2nd quarter Financial and Procurement Implementation Plan of all budgetary units in the Social Protection sector to ensure that actual expenditures align with planned activities

8. Continued • Structured on the job training and mentoring provided to LMs on budget preparation, execution, development of BC2 submissions for the year 1391 to ensure transfer of knowledge and skills from national and international consultants • On the job training to improve the execution rate of the development projects that LMs are responsible for • Expected Impact: Strengthening institutional capacity development and effective delivery management

9. Reporting, Advocacy and Communication • Submission of timely weekly, monthly and quarterly reports to PSU and Programme Team • Helping all units in MoF prepare targeted reports based on AWP outputs to meet PSU demands • MBAWP Communication and Advocacy Strategy developed with work plan for 2011/2012 and deliverables • 2 Press Releases, 3 webs stories published and shared with UNDP, Govt counterparts, donors to increase awareness and sharing of relevant information with donors • MBAWP Newsletter drafted to showcase news, initiatives and success stories and awareness raising among stakeholders • MBAWP web page on Budget Mof and UNDP Website being further developed

10. Budget Status • 2011 Required Budget – AWP USD 5.2 million • 2011 Approved Budget – AWP USD 4.6 million • Actual Expenditure October 31, 2011 = USD 2.99 million • Delivery Rate (%) = Last month September 2011 88.24 % (vs. AWP) • Delivery Rate (%) = This month October 2011 96.08 % (vs. AWP)

11. Human Resources • Exit Strategy Consultant, CD Consultant and Advisor under recruitment • 3 MBAWP national positions filled and others under recruitment

12. Challenges • Line Ministries lack log frames and results resource frameworks with clear outputs, outcomes and activities hampering quality of quarterly performance reports that LMs are responsible for • Poor cooperation and coordination between pilot Line Ministries and provincial budgeting departments slowing budget preparation of provinces • Deteriorating security condition in southern provinces preventing training on provincial budgeting for all provinces • Need for stronger capacity in LMs to a) analyse and assess current and future issues b) plan programmatic interventions that will address these issues c) implement initiatives thoroughly and on time and d) report transparently on activities and associated outcomes and impacts • Need for stronger positioning of NPPs by Cluster Secretariat to improve ownership and implementation

13. Priorities for November 2011 • Conduct interviews and select the Capacity Development Advisor, consultant and Exit Strategy Consultant • Conduct 2 day MABWP AWP stakeholder workshop to formulate priorities, outputs, results, indicators, targets, baseline for 2012 • Donor coordination to increase information sharing on project progress and updating donors on achievements through engaging communication material • Develop MBAWP 2012 strategic plan • Continue capacity development of MoF to increase national ownership • Prepare the MBAWP Project Doc , results framework, human resource framework, • Increase efforts for resource mobilization by preparing effective outreach communication material (videos, photos, web stories, success stories)

14. THANK YOU