Iraq Finally Passes $83bn Budget

Iraq’s parliament gave the final approval on Sunday to an $82.6 billion budget for 2011, according to Reuters. AKnews puts the Iraqi dinar amount at 96 trillion.

The budget is based on an average oil price of $76.50 per barrel, and 2.2 million barrels per day in crude exports.

The deficit was projected at $13.4 billion, although Iraqi officials have said the shortfall would be eliminated if world oil prices remain at current levels. About 95 percent of Iraq’s government budget comes from oil revenue.

Iraqi officials have announced massive projects to build hundreds of thousands of new homes and to boost electricity generation, and the budget allocates a total of $25.7 billion for investments.

The 2011 budget also allocates $2.05 billion to pay oil firms’ investment costs.

The budget foresees crude production of 100,000 bpd from Iraq’s semi-autonomous northern Kurdish region.

Passage of the budget was held up for months by political haggling.

Iraq has been hit by a series of protests in recent weeks, many aimed at pressuring the government to improve power and other basic services, and to alleviate food shortages.

Politicians have taken a number of steps to ease public anger. They diverted $900 million from the purchase of F-16 combat jets to the national food ration programme, made big purchases of sugar and wheat to bolster rations, and proposed cutting lawmakers’ salaries by 50 percent.

(Sources: Reuters, AKnews)

9 Responses to Iraq Finally Passes $83bn Budget

  1. Stew February 21, 2011 at 1:52 pm #

    Where’s the big RV? All the gurus said the RV was written into the the budget. They couldn’t all be wrong, could they?

  2. LZ February 22, 2011 at 12:54 pm #

    Well they are batting 100%…..wrong every time.
    so what do you suggest we do with our millions of dinars?

  3. LZ February 22, 2011 at 12:54 pm #

    I meant to write 1000%

  4. KB February 22, 2011 at 5:11 pm #

    Wallpaper or toilet paper may be good use… It is a shame we can’t use it as gas, since prices are sky rocketing again.

  5. […] The announcement came one day after parliament ratified the country’s $82.6 billion budget for 2011. […]

  6. […] budget is based on an average oil price of $76.50 per barrel, and 2.2 million barrels per day in crude […]

  7. Artie March 6, 2011 at 12:59 am #

    I was wondering how the recent jump in gas prices will affect the value in the Dinar against the Dollar. If the Dinar is increasing in value against the dollar is there any further motivation by the Iraqi Gov to RV? Also If the Dinar is worth more will that not increase the local Iraq’s buying power as well as stimulate their economy. As I read from a previous blog there is some concern about food and services which are less than abundant at this time. Would not a RV go a long way to relieveing that problem? Artie

  8. clay March 9, 2011 at 2:21 pm #

    why dont you people just be patient

  9. Tony March 9, 2011 at 8:08 pm #

    I am not sure what will really happen. I do have dinar, so my bias would hope for the RV, but in light of many reports coming out a LOP seems probable. Why would they do that, I ask my self. I understand that M wanted to print more dinar, that would create inflation, but why would they want to cut the # of zeros. I was in Turkey for a fabulous trip to the Churches of the Revelation. Asked my guide because they did the same thing. He said that it helped the people mentally, they felt that it was worth more, but the fact remained Cafe was the same price. I then look at the money listed on the CBI website. they have a 25 dinar coin and a 100 dinar coin not in curculation. I look at all the others. If you cut the zeros you have 5 cents, 25 cents, 50 cents, 1 dinar 5 dinar 10 dinar the 25 and 100 dianr coins, then you have this lowly 25000 dinar bill all by itself. Why. Iraq is going to do what they want, I dont think any real precedent has been set on what they will do. Each country and its situations have been different. Why would they not make the dinar worth 10 cents, float it and have all of the 25000 come back in let the speculators raise the value then lop. they get the best of both worlds. I am not a fences rider usually, but in this case I think that anyone who argues one way or another and stands firm on either side is wrong. Yes at first I thought I was going to be the next Trump, but I still think something will pan out of this. Cant wrap my head around it, but I just do. so I will keep reading and wondering. thanks for your response stew.

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    […] budget is based on an average oil price of $76.50 per barrel, and 2.2 million barrels per day in crude […]