VZCZCXYZ0001
PP RUEHWEB

DE RUEHBUL #3402 2980629
ZNR UUUUU ZZH
P 250629Z OCT 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 2440
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0921

UNCLAS KABUL 003402 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EEB/IFD/OMS - SAUNDERS AND SCA/A - JEA 
TREASURY FOR JCASAL, ABAUKOL, AWELLER, AND MNUGENT 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN PREL PGOV AF
SUBJECT: DEMARCHE RESPONSE: CENTRAL GOVERNMENT BUDGET TRANSPARENCY 
 
REF:  (A) STATE 81177 (B) STATE 288885 (C) KABUL 2812 
 
¶1.  (SBU) Deputy Finance Minister Mastoor responded October 20 to 
the demarche on budget transparency (Ref A), expressing appreciation 
for Afghanistan's FY-2009 waiver of the Foreign Appropriations Act's 
prohibition on assistance to "a central government that does not 
make its national budget, both income and expenditures, publicly 
available on an annual basis."  He noted, however, his Ministry 
annually publishes the Afghan national budget on a publicly 
available website 
www.budgetmof.gov.af/nationalbudget/budget/bu dget.html 
in three languages:  English, Pashto, and Dari.  In addition, 
Mastoor said the Finance Ministry also posts mid-year reviews of the 
national budget (reconciling expenditures with the budget ceiling), 
the MOF's Treasury Department execution and disbursement reports, 
and end-of-the-year closing account and audit reports on its web 
site.  Responding to the point that the Ministry might also post 
national budget documents in government offices and other public 
places, Mastoor said he would consider the suggestion. 
 
¶2.  (SBU) Mastoor acknowledged his Ministry must refine its 
budgetary submissions further to meet international transparency and 
internal controls standards.  He stressed the Finance Ministry is 
seeking the reinstatement of Article 61 of the Public Finance and 
Expenditure Management Law to permit his Ministry to audit line 
ministries (Ref C).  Mastoor predicted the issue would be resolved 
in the next few weeks, thereby strengthening the Ministry's 
oversight powers.  Mastoor added that the MOF is considering 
adopting a performance review system that would report both 
disbursements to line ministries and the actual performance outcomes 
of those disbursements.  Deputy Minister Mastoor said he would soon 
request USAID and World Bank assistance in implementing this 
performance-based budgetary reporting system so that it could 
encompass as well provincial and district-level offices. 
 
EIKENBERRY