Overall Municipal Budgets and revenues

Municipalities must finance their budgets from municipal revenue sources. The only exception is Kabul Municipality, whose development budget is partially financed from the National Budget. The rates for revenues which municipalities are allowed to collect are set by the Ministry of Finance.

Charikar, the provincial capital of Parwan, seen from the municipal park ‘Gulghundi’, a source of income for the municipality.

 

Municipal revenues are categorized into fixed and non-fixed sources. Municipal budgets are compiled of three elements: the projected fixed revenue, the projected non-fixed revenue, and the municipal bank balance. Forty-five percent of the fixed revenues can be spent on running costs, such as salaries of employees, consumables and administrative items such as stationary, which make up the operational expenses. The remaining 55% of the fixed revenues, the non-fixed revenues and the savings are reserved for the development budget. If in the course of a financial year there is room for additional spending, a supplementary budget can be drawn up, which allows to increase the number of staff and generate more revenue. A budget revision is required when a municipality urgently needs to reallocate budgetary resources.