Oil price windfall fuels $79b Iraq budget
Tuesday, 23 September 2008
BAGHDAD, Sept 22 (AFP): Embattled Iraq will spend nearly 79 billion dollars on reconstruction, public utilities and welfare in 2009, a 58 per cent jump from this year, the government announced yesterday.
Higher oil prices have swollen earnings from petroleum by 65 per cent and this source accounts for 93.6 per cent of the country's budgeted income for next year, the government said in a statement.
Iraq plans capital spending of 18.6 billion dollars, up 43 per cent, while recurring expenditure is forecast at 60 billion dollars, an increase of 63 per cent from 2008, the statement said.
The government gave no details of expected revenue for next year, but said the projected fiscal deficit for 2009 is about 16 billion dollars. It was not immediately clear how the government proposes to bridge the deficit.
Washington said last month that Iraq is amassing a huge budget surplus as oil export revenues are soaring and it is spending little on reconstruction.
The US Government Accounting Office said the country has amassed a surplus of up to 79.3 billion dollars out of revenues of up to 182.2 billion dollars since 2005.
Little of that money is going to maintaining and rebuilding key civil infrastructure, the GAO report said in August.
Over 2005-2007, the government spent only one per cent of total expenditures to maintain Iraqi and US-funded investments such as buildings, water and electricity installations, and weapons, the US financial watchdog said.
The report noted that since 2003, when the US forces invaded the country, Washington has budgeted 48 billion dollars for Iraq stablisation and rebuilding efforts, and had committed about 42 billion dollars of that by June 2008.
Higher oil prices have swollen earnings from petroleum by 65 per cent and this source accounts for 93.6 per cent of the country's budgeted income for next year, the government said in a statement.
Iraq plans capital spending of 18.6 billion dollars, up 43 per cent, while recurring expenditure is forecast at 60 billion dollars, an increase of 63 per cent from 2008, the statement said.
The government gave no details of expected revenue for next year, but said the projected fiscal deficit for 2009 is about 16 billion dollars. It was not immediately clear how the government proposes to bridge the deficit.
Washington said last month that Iraq is amassing a huge budget surplus as oil export revenues are soaring and it is spending little on reconstruction.
The US Government Accounting Office said the country has amassed a surplus of up to 79.3 billion dollars out of revenues of up to 182.2 billion dollars since 2005.
Little of that money is going to maintaining and rebuilding key civil infrastructure, the GAO report said in August.
Over 2005-2007, the government spent only one per cent of total expenditures to maintain Iraqi and US-funded investments such as buildings, water and electricity installations, and weapons, the US financial watchdog said.
The report noted that since 2003, when the US forces invaded the country, Washington has budgeted 48 billion dollars for Iraq stablisation and rebuilding efforts, and had committed about 42 billion dollars of that by June 2008.