The Public Expenditure Tracking Survey(PETS) looked at four components essential to thestrengthening and development of the education sector inAfghanistan: 1) the payment of staff salaries; 2) theavailability and use of an operations and maintenance(O&M) budget to support administrative teams andschools; 3) the construction of new schools through theEducation Quality Improvement Program (EQUIP); and 4) thedistribution of textbooks. The overall objective of the PETSis to understand the dynamics of resource flows in theeducation sector, to articulate a number of recommendationsto improve effectiveness of this resource flow and increasethe impact of reforms in the education sector inAfghanistan. This first study will focus on key aspects ofresource flow: the extent to which public resources reachservice-delivery points (schools); the timeliness of thatdelivery; the type and scale of bottlenecks and anomalies inthe system that may result in delay or leakage of inputs toservices; the capacity and flexibility available amongstlocal officials at all levels to address these bottlenecks.The report is organized as follows: section two presents anoverview of the financial landscape of education in thecountry as well as specific profiles of the three provincesand districts where the research was carried out. Sectionthree looks at the issues related to the payment of salariesand wages to teachers. Section four presents the factorsthat lead to inefficiencies in meeting the O&M needs ofschools and provincial offices. Section five presents thestate of completion of schools under EQUIPs and analyses thereasons that lead to these in the three provinces. Sectionsix tracks the distribution of textbooks to provinces fromthe central level to the schools.