Afghanistan Development Brief : Highlights of Afghanistan Fiscal Year 1398 Budget

In this note we provide an assessment of the technical aspects of budget and discuss the implications of the medium-term fiscal framework. The budget document is technically sound and includes some significant improvements in compliance with international best practices. The medium-term fiscal implications of the budget are concerning, however, with declining aid leaving little fiscal space for development and O&M spending over the medium term as security expenditures rapidly increase.