Publication

This brief explains why the Afghan government experienced strong revenue growth in 2016. (Its income grew by 18% after a 22% increase in 2015). The big jump occurred because of modest inflation, the Afghan currency’s depreciation, the impact of tax and fee increases introduced in 2015, and stronger revenue collection efforts in 2016. Despite these large gains, however, the outlook is for slower revenue growth in 2017 and the end of long-term revenue increases without a stronger economic revival and greater progress towards peace.