A senior US general has claimed that the Taliban is facing a "financial crisis".

Major General Richard Mills, who leads coalition troops in Afghanistan's southern Helmand province, a key poppy-growing region for the Taliban, said that with supply routes being blocked, the Taliban is facing a financial crisis.

"We believe that the local insurgency here within the province has less than one half of what they had last year in operating funds," The Telegraph quoted Major General Mills, as saying citing "sensitive intelligence" reports.

Major General Mills comments came as Afghanistan's President Hamid Karzai said a NATO air strike had killed campaign workers seeking votes in this month's parliamentary elections.

Major General Mills said coalition and local forces were making steady progress in Marjah and across Helmand province, and that the Afghan army and police soon could be ready to take over security duties in some districts.

"I do believe in the coming months ahead there will be areas in which we can turn over a significant portion of the security to them for their execution," Major General Mills said. (ANI)