Columbia International Affairs Online: Policy Briefs

CIAO DATE: 10/2014

Afghanistan's Looming Fiscal Crisis: What Can Be Done?

William A. Byrd

August 2014

United States Institute of Peace

Abstract

Afghanistan faces a fiscal crisis due in large part to worsening domestic revenue shortfalls. Averting this crisis will require strong leadership from the new Afghan government that will be replacing the Karzai administration. The country’s revenue system and collections need to be improved, corruption reduced, new revenue sources developed and expenditures cut. More international aid also is needed to help stabilize Afghanistan’s budget as the government undertakes these reforms.