§ The Secretary of State for International Development (Clare Short)The first Afghanistan Development Forum took place in Kabul on 13–14 March 2003. The Afghanistan Transitional Administration (ATA) presented its budget for the next financial year (2003–04) to donors. This was another milestone in Afghanistan's rehabilitation as a functioning state. It was well attended by many Afghan Ministers and a large number of donors, including officials from my Department. Donors welcomed the progress that the Afghans have made in the last 15 months, and acknowledged the huge challenges still to be faced.
The Afghan Transitional Administration presented its National Development Budget for the coming year (1382). The total budget of $2.3 billion is to cover both the ordinary and the development budgets. The ordinary budget, which covers civil service, police and army salaries as well as operating and maintenance budgets, totals $550m. The development budget covering 12 broad sectors for development as outlined in the National Development Framework, totals $1.7 billion. Whilst donors will continue to fund most of both budgets the ATA plan to raise $200 million in domestic revenue to contribute to the ordinary budget.
The ATA expressed their commitment to begin to reform the public administration. Reforms announced included the completion in the next six months of a nominal payroll database for civil servants and the enforcement of an immediate freeze on civil service 52WS numbers. A review will also be conducted of ministries' functions and senior staffing levels. While we welcome these announcements on reform we shall continue to seek more detail and press for urgent implementation.
Donors responded positively to the ATA budget, already pledging over $1.8 billion for 2003–04. My Department reaffirmed our Tokyo commitment to provide at least £40 million a year for five years. We also pledged to increase this amount, depending on performance, especially on public administration reform. We announced a possible additional £10 million for 2003–04 depending on progress. The ATA welcomed this approach and encouraged other donors to follow it.