Strengthening the budget process
Soon after the fall of the Taliban, ASI designed and implemented a comprehensive reform programme for the Ministry of Finance and the Central Bank. A key focus was strengthening budget preparation and execution processes and institutions, with particular emphasis being placed on unifying the development and recurrent budgets and preparing for the introduction of a Medium Term Expenditure Framework. ASI reviewed the Budget Law and the organisational structure supporting it and recommended improvements.
ASI also implemented the first steps towards strengthening revenue collection while revising the tax code to remove perverse incentives and develop a more coherent direct and indirect tax structure. A taxpayer database was specified with particular attention paid to the appropriateness of the technology for the environment and the practicalities of data collection and dissemination.