Afghanistan faces major challenges to economic growth and governance, including protracted insecurity, corruption and service delivery bottlenecks. Addressing these challenges is a priority of the Afghan Government and will be key to improved development and poverty alleviation in the country.
To achieve this objective, Australia is providing on-budget funding through the World Bank-administered Afghanistan Reconstruction Trust Fund (ARTF), through which donors contribute directly to the Afghan Government's National Priority Programs across sectors and supplement the Afghan Government's non-security operational expenditure. Australia also supports reform of public financial management (PFM), by building the capacity of Afghan Government ministries in budget management and execution, financial accountability and service delivery.
Security remains critical to Afghanistan's economic and social development. Australia's commitment to sustainment of the Afghan National Defence and Security Forces is helping to develop a professional police force that is capable providing security to all Afghans. Australia is meeting this commitment through on-budget support provided to the United Nations Development Programme-managed Law and Order Trust Fund for Afghanistan.
Afghanistan Reconstruction Trust Fund (ARTF)
$520.01 million, 2003-2020
The World Bank-administered ARTF is a multi-donor trust fund, through which donors contribute directly to the Afghan Government's National Priority Programs across sectors, including education, health, infrastructure, agriculture, rural development and public financial management, as well as supplement non-security operational funding, such as teachers' salaries and training for civil servants. The ARTF also comprises an Incentive Program, through which the Afghan Government's performance towards agreed economic and fiscal reforms is assessed and rewarded.
Law and Order Trust Fund for Afghanistan (LOTFA)
USD50 million, 2015-2018
Managed by the United Nations Development Programme, LOTFA assists the Afghan Government to: build a stronger national police force by improving salary and payroll systems; build key infrastructure; and train police officers.
DFAT funding to LOTFA forms part of Australia's commitment to provide USD100 million annually over six years (2015-20) to support the sustainment of the Afghan National Defence and Security Forces. Of Australia’s annual USD100 million sustainment commitment, USD20 million is managed by DFAT for ODA-eligible activities, with the remaining USD80 million managed by the Department of Defence.
Strategic Advice to the National Unity Government
$9.16 million, 2017-2018
Through the Institute for State Effectiveness, Australia is helping to provide targeted strategic advice and technical assistance to the Afghan Government, including the Office of the President and Ministry of Finance, to progress its reform agenda, including on public financial management and infrastructure.