Government of Islamic Republic of Afghanistan Improves Governance Through Public Financial Management Reform

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Case Study describes sequence of successful PFM reforms and capacity building in Afghanistan since 2002

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Afghanistan has made remarkable progress in achieving good governance through Public Financial Management reform

FreeBalance, a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth, today released a Case Study that details the Government of the Islamic Republic of Afghanistan's success at improving governance through PFM reform. The Islamic Republic of Afghanistan PFM Case Study covers the sequence of PFM reform from 2002 to the present day. PFM reform is critical to improving good governance. Good governance is critical to economic development. This Case Study is the second in a series to assist governments around the world achieve country growth. The first was the Government of Kosovo PFM Case Study.

The Afghanistan Financial Management Information System (AFMIS) is based on the FreeBalance Accountability Suite. The AFMIS has supported the Government of Afghanistan agenda of reform and modernization. More than 99% of the government’s budget execution is captured in AFMIS on a real-time basis. In 2009, regular training on AFMIS resulted in 262 government employees being added to the AFMIS skilled workforce.

The PFM Case Study analyzes Public Expenditure and Financial Accountability (PEFA) assessments. From 2005 to 2007, the Government of Afghanistan improved governance as demonstrated by two PEFA assessments. Less than 10 countries have completed two PEFA assessments. The Government of Afghanistan improved 17 of 31 PFM measurements. The largest improvement was seen in the ‘Predictability and Control in Budget Execution’ assessment. The PFM Case Study describes the Government of Afghanistan goals of improved governance and transparency and provides a GRP modernization scorecard.

"Afghanistan has made remarkable progress in achieving good governance through Public Financial Management reform," said Manuel Pietra, President & CEO of FreeBalance. "The Afghanistan case study illustrates how the Government of Afghanistan has built capacity and effectively decentralized budget execution."

Achievements by the Government of Afghanistan include:

  •     Improved governance as demonstrated by PEFA assessments
  •     Effective implementation of PFM reform in Treasury
  •     Increased capacity in budget execution, cash management and procurement
  •     Decentralization of budget execution to line Ministries and Mustofiats

FreeBalance is active in 19 countries, including Antigua & Barbuda, Afghanistan, Canada, Iraq, Kosovo, Liberia, Mongolia, Namibia, Pakistan, Sierra Leone, Southern Sudan, Timor-Leste, and Uganda among others. FreeBalance software manages more than a quarter trillion ($US) annual budgets worldwide. More than 70,000 users around the world use FreeBalance software to manage a global civil service workforce of 1,500,000.

About FreeBalance
FreeBalance helps governments around the world leverage robust Government Resource Planning (GRP) technology to accelerate country growth. FreeBalance software solutions for public financial and human resource management support reform and modernization to improve governance, transparency and accountability. Good governance is required to improve development results. For more information, visit http://www.freebalance.com.

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Case Study describes sequence of successful PFM reforms and capacity building  in Afghanistan since 2002