2019 Incentive Program Development Policy Operation

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The development objectives of the 2019 Incentive Program Development Policy Operation for Afghanistan are: (i) strengthening the policy framework to support state effectiveness, private investment, and social inclusion; and (ii) improving the policy and institutional framework for public financial management. The operation will be supported by an International Development Association (IDA) grant and million grants from the Afghanistan Reconstruction Trust Fund (ARTF) and is the second of three planned stand‐alone operations aligned with government’s current three‐year program of policy reforms. World Bank Board approval is sought for IDA financing in support of the program. The operation seeks to support policy continuity and macroeconomic stability through this period of heightened uncertainty. Policy reforms supported by the operation are intended to help manage risks through: (i) maintaining momentum on core reforms to support self‐reliance and economic development; (ii) ensuring continued availability of resources for core government functions through revenue and expenditure reforms; and (iii) supporting increased transparency in revenue performance and cash management to enhance accountability to citizens, inform policy dialogue with development partners, and provide early warning to government and the international community in the case of economic disruption.