Fiscal Performance Improvement Support Project (FSP):

The objective of the Fiscal Performance Improvement Support Project for Afghanistan is to contribute to the improvement of domestic revenue mobilization and public expenditures management, and of reinforcing a performance oriented management culture in the Ministry of Finance. There are four components to the project, the first component being budget as tool for development. This component aims to increase budget credibility by improving the efficiency of budget processes, realistic budget estimation and costing, linking budget with policy and introducing medium term budgeting. It is organized along the following inter-linked sub-components: budgeting processes, fiscal policy, and development policy. The second component is the revenue mobilization. This component is designed to strengthen capacities of various revenue administration departments to increase tax compliance and facilitate timely filing and payment. It further aims to enhance Government’s capacity to effectively regulate Afghanistan’s minerals and hydrocarbon resources sector. The third component is the treasury management, accountability, and transparency. It is organized along the following subcomponents: treasury, audit and financial reporting, SOEs, insurance, and properties, and citizen’s engagement. Finally, fourth component is the institutional capacity building and performance management. This component aims to build capacity of MOF staff and the requisite systems for effective functioning of the ministry, and to reinforce overall performance management and coordination of the FPIP.