Islamic Republic of Afghanistan

Ministry of Higher Education

Khana -e- Noor Institute of Higher Education
Faculty of Economics
Department of Business Administration
Monograph Proposal

Student Name: Sayed ilyas Hashimi Father Name: Sayed Aziz Hashimi

Registration No.: Sp17/MGT/ A54 Session: Spring

Proposed Monograph topic: The effects of financial Date of Proposal: 27 Nov 2021

management system at ministry of agriculture on the

Contact No.: +93 781684648
economy of Afghanistan
Email Address

Signature

Table of content
 Information about the Proposed Supervisor
1.1. Introduction
1.2. Background of study
1.3. Research Objectives/ Objectives of study
1.4. Research Questions
1.5. Hypothesis
1.6. Literature Review
1.7. Research Methodology
1.8. Population
1.9. References
INFORMATION ABOUT THE PROPOSED SUPERVISOR
Full Name: Mr.Rahmatullah Hamidi Academic Position: Lecturer at KNU

Academic Qualification: Degree Master Specialization: HR

Supervisor Signature:

MONOGRAPH
No. Title of Monograph
1 The effects of financial management system at ministry of agriculture on the economy of Afghanistan

Proposed Supervisor Signature Head of Department Signature

_______________________ __________________________
Date : / / Date : / /
 INTRODUCTION

1.1 Introduction to the Study

The agricultural sector was severely affected following decades of conflicts and civil war. Since 2002
the Government of Afghanistan in close cooperation with the development partners, has made serious
efforts to reconstruct the sector and increase outputs with tangible results.
The livestock population has increased by a million animals, the number of hectares irrigated is now at
143,000 hectares and the country is exporting agricultural commodities. Despite these efforts, the
country’s agricultural production is still not enough to feed its own population and even worse famines
are becoming common the last couple of years.
The Ministry of Agriculture, Irrigation and Livestock (MAIL) together with the Ministry of Rural
Rehabilitation and Development (MRRD) and the Ministry of Anti-Narcotics are implementing
programs and projects to increase the country’s production and make Afghanistan self-sufficient.
Important programs focus on rehabilitating and improving irrigation systems, distribution of seeds and
fertilizers and providing credits to farmers. The actual outturn for the operating budget was 97% in FY
1388 (adjusted for contingency funds) and 98% in FY 1390. The actual outturn for the development side
was 62% in FY 1388 and 39% in FY 1390, excluding in year adjustments. To improve their
development expenditure outturn, MAIL should only include development projects in their budget that
have a strong donor commitment and that have been approved by the Ministry of Agriculture.
The annual budget documentation, published on the website of the Ministry Of Finance, contains the
operating and development budget for MAIL including the new development projects and projects carry
forwarded from the previous year. Biweekly and quarterly budget execution reports are produced and
shared with the senior management and the Ministry of Economy. These reports comprise information
on implementation rates of projects.
1.2 Background of study

The agricultural sector was severely affected following decades of conflicts and civil war. Since
2002 the Government of Afghanistan in close cooperation with the development partners, has made
serious efforts to reconstruct the sector and increase outputs with tangible results.
The livestock population has increased by a million animals, the number of hectares irrigated is now at
143,000 hectares and the country is exporting agricultural commodities. Despite these efforts, the
country’s agricultural production is still not enough to feed its own population and even worse famines
are becoming common the last couple of years.
The Ministry of Agriculture, Irrigation and Livestock (MAIL) together with the Ministry of Rural
Rehabilitation and Development (MRRD) and the Ministry of Anti-Narcotics are implementing
programs and projects to increase the country’s production and make Afghanistan self-sufficient.
Important programs focus on rehabilitating and improving irrigation systems, distribution of seeds and
fertilizers and providing credits to farmers. The actual outturn for the operating budget was 97% in FY
1388 (adjusted for contingency funds) and 98% in FY 1390. The actual outturn for the development side
was 62% in FY 1388 and 39% in FY 1390, excluding in year adjustments. To improve their
development expenditure outturn, MAIL should only include development projects in their budget that
have a strong donor commitment and that have been approved by the Ministry of Agriculture.
The annual budget documentation, published on the website of the Ministry Of Finance, contains the
operating and development budget for MAIL including the new development projects and projects carry
forwarded from the previous year. Biweekly and quarterly budget execution reports are produced and
shared with the senior management and the Ministry of Economy. These reports comprise information
on implementation rates of projects.

1.3 OBJECTIVES OF RESEARCH

The objective of this study

 The main objective of this research is to analyze the effect of financial mgt system of ministry of
aggreculture on economy of Afghanistan.
  To make a sound understanding about performance of financial mgt system.

 To highlight the major reasons behind effect of financial mgt system on economy.

1.4 RESEARCH QUESTIONS

1.How and when the financial mgt system of ministry of agriculture effects the economy of
Afghanistan.?

1. By which ways we can control the effects of financial mgt system of ministry of agriculture on the
economy of Afghanistan?
2. Which reasons are makes the effects of financial mgt system on economy of Afghanistan?

1.5 RESEARCH HYPOTHESIS

The hypotheses to be tested are stated in words as follows:

Null Hypothesis: Financial Mgt System of Ministry of Agriculture does not affect the
Economic Situation in Afghanistan.

Alternative Hypothesis: Financial Mgt System of Ministry of Agriculture affects the Economic
Situation in Afghanistan.

RESEARCH LIMITATIONS
During the research of this study, I will face most of these problems:
1. Time limitation;
2. Lack of resources;
3. Lack of available and/or reliable data
4. Lack of internet access
1.6 Literature Review

Johnson (1971) stated that functions of financial Management include financial planning,
managing assets, raising funds and meeting special problems.

Kahlon and Singh (1981) were of the opinion that management of capital resources along with
its efficient organization with other firm resources is very important for farmers. Massie (1987) defined
financial management as the operational activity of a business that is responsible for obtaining and
effectively utilizing the funds necessary for efficient operation. The objective of financial management
IS to ensure that adequate cash is on hand to meet the required expenditure.

Johl and Kapur (1989) reported that judicious management of farm finances is very important for
increasing the income of fanner, and financial management deals with the study of principles and
practices of financing the farm business.

LaDue and Gloy (2003) studied the impacts of financial management practices on farm
profitability. The paper examined the effects of business analysis and control, investment analysis and
decision-making on return on asset (ROA). To measure the extent of business analysis, the authors
identified the producers who benchmarked their profitability relative to other farms, producers who kept
track of their financial profitability over time, and those who hold formal business meetings each year.

1.7 METHODOLOGY

Overview of research approach

1. Descriptive Qualitative: Observational Case Study Survey
2. Descriptive Quantitative:
3.
1.8 Population

Population of this study will be all the personnel of Economic sector and stuff of ministry of
Agriculture.

Sample Size
The sample size will be 40 respondents.

Data collection
As a sample method, convenient sampling will be used to collect data

Data Analysis
Both Primary and Secondary data will be used in this research
 Primary data: will be collected by the distributing Questionnaire among the research population
simple.
 Secondary data: will be collected from any resources like books, online library, international
journal and articles.

Data Interpretation
As a sample method, convenient sampling will be used to collect data.
1.9 References

 http://en.wikipedia.org/wiki/affect/financial system#firm level analysis

 https://www.google.com/search?q=financial+system+literature+review
 Farooq Aslamy, Directorate Feb, 2016 director of, Accounting & Finance
 Iftikhar Ahmad, Finance Manager Production and Productivity (APP), Finance &
Accounting Directorate