An Analytical Study of the Role of Foreign Aid in Financing Afghanistan’s National Budget (2011–2022)

Abstract

The primary objective of this study is to assess the effectiveness of foreign aid in financing the Afghan government budget during the years 2011 to 2022. The research employs a mixed-method approach, combining descriptive and quantitative analysis. Data were collected from official sources including the Ministry of Finance and the Central Statistics Office, and analyzed using SPSS software (version 26). The significance of this study lies in Afghanistan’s heavy reliance on foreign aid during this period, making it crucial to understand the role of such aid in national budgeting for future economic planning. The findings indicate a strong and positive correlation between foreign aid and the national budget (correlation coefficients of 0.864 for the ordinary budget and 0.973 for the development budget). Foreign aid constituted a significant portion of the government's budget financing. Therefore, the Afghan government must plan to use these resources effectively to promote sustainable economic growth and reduce long-term dependency.