1. Cluster Bankable Programmes, Budget Process and ARTF M Mustafa Mastoor Deputy Minister for Finance

2. Line Ministry ANDS results frameworks BC1 - Baseline program costs and new policy initiatives Bankable Programmes as Input to Budget Process MTBF and budget ceilings BC2 - Detailed project documents Decide goals and objectives Design ‘bankable’ programs DFR1 and Kabul conference – initial commitments from donors DFR2 – final funding commitments from donors Detailed budgets Detailed ‘bankable’ program design and costing Budget Process

3. Bankable programmes: A tool for prioritisation of budget requests of line ministries – budget effectiveness – Cluster Bankable programmes integral part of BC1 At this stage, they contain only rough costing and output targets – Once donors provide commitment to fund them (with ARTF as a key financing mechanism), cluster bankable programmes included in the MTBF and budget ceilings of line ministries A tool for higher execution rate through good design of bankable programmes – budget efficiency – (If donor funding is obtained) through BC 2 bankable programmes fully developed At this stage, detailed project documents, including feasibility studies, project appraisal, procurement plans etc. are developed

4. ARTF Financing strategy The four key principles remain: The need to increase government ownership, including in strategic prioritisation of allocations A move towards multi-year financing to improve predictability of funding and improve planning Better integration with the Government’s MTFF and annual budget process A more multi-lateral approach to decision-making in the ARTF

5. Financing requirements

6. What We Ask from Donors (ARTF) We acknowledge and appreciate existing aligned support under ARTF – but we also need to ensure that there is funding and flexibility for new cluster priority programmes going forward Donors to provide multi-year funding commitments – Funding commitments provided in time to feed into MTFF, MTBF and National Budget – To fund Government defined priorities – i.e. new policy initiatives (cluster bankable programmes) – Funds channelled through core budget Next Steps: – Presentation of the Government policy initiatives (including bankable programmes) in June and July – Decision on the best modality for future key infrastructure programmes (infrastructure window or a separate trust fund – with Government having a central role in allocation decisions)