An Analysis of Non-Tax Revenue Contribution in Afghanistan Budget

Abstract

In recent years, Afghanistan's national budget has been financed through its stable domestic revenues, including tax revenues, non-tax revenues, and customs duties, the scope of this study covers the period from 2006 to 2026 and focuses on the assessment and analysis of the share of non-tax revenues in Afghanistan's national budget. Afghanistan ’non-tax revenue has been steadily increasing since the establishment of the interim government until now and shows a large Contribution in the Afghanistan budget in recent years, 2006-2026 has been designed. The objective of this research is to show the contribution of non-tax revenue in Afghanistan’s annual budget. Quantitative design was to collect data through from various libraries. Numbers and figures of Afghanistan’s internal revenue and budget have been obtained from the second hand (annual approval of the budget, statistical yearbooks and RMIS system). it has been analyzed by the software (E-views) based on the ordinary least squares (OLS) model, tests of data normality, covariance, serial autocorrelation between the residuals, Dickey Fullers unit root test and Cointegration test to examine the existence of a long-run relationship among the variables have been applied. The result of the research shows a positive and statistically significant relationship between non-tax revenues and the national budget, according to the estimated results, the probability value of the level of significance (P-value = 0.046260) is less than the 0.05 significance level, indicating statistical significance, which causes a change in the budget level by 185.5% with each change in the amount of non-tax revenue, on the other hand, the estimated value of R2 shows that if other influencing factors on the budget are constant, the non-tax revenue alone can be as much as 20.28%  effective on determining the budget level.