World Bank: Security Takes 45 Percent of Taliban Administration Spending
More than 45 percent of the Taliban administration’s spending in the current fiscal year has gone to the security sector, according to the World Bank’s August 2026 Afghanistan Economic Monitor.
The report says security spending reached 51.3 billion afghanis, or about $787 million, accounting for 45.2 percent of total expenditure. This was higher than combined spending on education, health, agriculture, infrastructure and private-sector development.
Education received 18.3 billion afghani, while 2.4 billion was allocated to health and 1.2 billion to agriculture. Social protection received 10.9 billion afghanis, while infrastructure and natural resources received 9.4 billion.
The World Bank also reported that government spending rose faster than domestic revenues. Total spending in August reached 27.3 billion afghani, up about 31 percent from the same month last year.
The report says Afghanistan’s economic activity is losing momentum despite improved agricultural prospects. Lower foreign aid, disruptions to regional trade and transit, regional tensions, and the continued return of Afghans from Iran and Pakistan are putting additional pressure on the economy and labour market.
Afghanistan’s total trade reached about $1.34 billion in August. Exports rose to $145.6 million, while imports reached $1.19 billion, leaving a trade deficit of about $1.05 billion.
The World Bank also reported that annual inflation fell to 6.7 percent in August, while the afghani strengthened against the US dollar to an average exchange rate of 65.18 afghani per dollar.
The report says that despite some improvements in domestic revenue, trade and agriculture, continued pressure on public finances, employment and household incomes remains a major challenge for Afghanistan’s economy.
