By: The Kabul Times
KABUL: The Afghan Ministry of Finance announced that the 46% deficit in the national budget for fiscal year 1400 (according to the third draft) will be secured by loans from the International Monetary Fund. The total sum of the 1400 fiscal year’s deficit is 37.6 billion Afs (over $448 million).
The loans from the IMF to Afghanistan to cover the national budget will have a simple repay policy, like previous loans, said the Ministry of Finance, as qotued by a local TV channel Tolonews.
“In the 1400 fiscal year, around 17.4 billion Afs (over $225 million) is anticipated as a loan from the IMF. Until now, Afghanistan’s national debt has amounted to $1.5 billion USD and has been covered by international organizations and many countries,” said Rafi Taabeh, a spokesman for the Ministry of Finance.
The loans should be invested in big, infrastructural projects, as the projects could be a revenue-generating resources to repay the loans, said Salim Tufan, an economics expert. “I assume it is unfair and unjust to take loans, they cannot be paid back under the current circumstances. We cannot use the loans effectively or in a productive way, as the war flares and the government is focused on ending it,” Tufan added.
According to the Ministry of Finance, the current year’s budget deficit will be covered by loans, international aid, and income from various internal resources, said the Ministry of Finance.
The 1400 fiscal year’s total budget is 473 billion Afs (Over $6 billion), which includes over 311 billion Afs (Over $4 billion) for the regular budget, and over 161 billion Afs (over $2 billion) in the development budget.
According to the 1400 fiscal year’s third budget draft, the budget-deficit will be secured by IMF loans and funds from the discretionary codes.