New Background Paper on Iraqi Budget

By John Lee.

The United Nations’ Joint Analysis Policy Unit (JAPU) has issued a background paper on Iraq’s budget for 2013.

The Government expenditure for 2013 totals IQD 138.4 Trillion ($ 118.3 Billion), with an increase of 18% over 2012 and exceeding 70% of GDP. The budget has three main headings: Energy, Security / Defense and Social Services, accounting for 21%, 14%, and 13% respectively of total budget.

Investment Expenditure represents 40% (IQD 55.1 Trillion) of government budgeted expenditure, the largest ever for Iraq. Investment in Oil and Electricity amounts to over 43% of the investment expenditure.

Government budgeted revenues amount to IQD 119.3 Trillion, with revenues from oil making 93%. The increase in oil revenues, made it possible for the government to cover its operating expenditure and allocate more to investment, yet heavy reliance on oil resulted in a budget fragile to oil shocks, and government going through complementary budgeting, and excessive delays in investment projects implementation.

The full report can be downloaded here.

(Source: UN)

12 Responses to New Background Paper on Iraqi Budget

  1. Lorenzo January 30, 2013 at 10:55 pm #

    I remember the Belafonte song “There is a hole in the (Iraqi budget) bucket. Fix it”
    Considering that Iraq is not at war (unless there are plans for it) a 14% allocation of the budget to defence and only 13% allocation to the social part or schools, elder seems challenging the intelligence of the Iraqi society.
    Do you really know which countries have allocated more than 10% of their budget to defence? Are those countries role models for Iraq?
    Well, it is a matter of perceived risks but it looks so far from the reality of the Iraqi society that I still wonder why an “Iraqi spring” is not here (yet)

  2. Stew January 30, 2013 at 11:06 pm #

    That is defense and security.

  3. Stew January 30, 2013 at 11:23 pm #

    I notice there’s no RV mentioned in the report even though most of the dinar gurus/pumpers/scammers have convinced their faithful that the budget will bring a RV. Every year there’s a budget, every year the scammers do this. You know the definition of insanity right?
    This is becoming more of a tradition than Charlie Brown trying to kick that football every year only to have Lucy pull it away. Dinar holders for some reason, no matter how many times they watch it, think Charlie is really gonna kick that ball this year.

  4. Steve January 31, 2013 at 1:27 pm #

    There is no RV…

  5. Jamma January 31, 2013 at 1:30 pm #

    I agree Steve. I came to the same conclusion in Aug 2012.

  6. Mike January 31, 2013 at 7:45 pm #

    The RV will not be like Kuwait in 91 or 92, this time it’s going to be different, it’s going to be a global reset on all the country’s not just Iraq, this is bigger then just one country way bigger!!!! I bought some vnd cause there country doing better then our Counrty so I’m betting against the USA dollar that’s how I’m looking at it, and that’s how you should too. Example just like In 1999 when gold was like 200 a ounce, but now it’s like 1700. It’s just betting against the dollar!!!! But I’m no GURU I’m just in stock trading/real estate. I’m a reg trader!!!! Everybody have a good day!!!!

  7. Stew February 1, 2013 at 1:14 am #

    “Kuwait RV”, “Global Reset”, “VND”, “betting against the U.S. dollar”.

    Geez. I wonder where you get info from?

  8. Malay Warrior February 1, 2013 at 3:20 am #

    How Iraq will make money in business if the value of dinar is still at low rate……so rv will come soon…iraq is 1of the main players in the oil n gas industry…..lately many countries n multinational companies have invested billion dollars in iraq….im sure the GOI will do something with their currency…….

  9. Stew February 1, 2013 at 4:08 pm #

    Malay W.
    “How Iraq will make money in business if the value of dinar is still at low rate”
    This is another one of those myths pushed by so called gurus that actually proves just how ignorant they are. The exchange rate doesn’t have anything to do with how much money they make. First off, almost all international business will be conducted in dollars or euros or other major currency.
    Secondly. Let’s make an example. Say there are two companies starting up and they both make and sell bicycles. The bikes are very similar in quality and value. Let’s say they are worth 1000 American dollars. One company is in Kuwait, the other is in Iraq. The Kuwaiti company builds and sell their bikes for 285 Kuwaiti dinar (same as $1000). The Iraqi company builds and sells their bikes for 1,166,000 Iraqi dinar (same as $1000). They are both making the same amount of money, $1000. Say an American has $1000 to buy a bike. It doesn’t matter which country he buys his bike from, he can exchange his dollars into 1,166,000 Iraqi dinar or 285 Kuwaiti dinar. If the company in Kuwait has a 10% sale on their bikes and decides to sell them for 257 Kuwaiti dinar ($900), an Iraqi can opt to exchange his Iraqi dinar into Kuwaiti dinar and buy the bike in Kuwait saving himself 10%. It would work the same if the Iraqi company had a sale.
    If Iraq were to do this fantasy RV to $1, do you and the gurus who push this line think the Iraqi bike company will still be able to sell their bikes for over 1 million dinar? That’s preposterous right? They of course would have to adjust the price of the bike to 1,000 dinar. So they would make the same amount after a mythical RV as they would prior to a mythical RV. Again proving that gurus who push this line of thought don’t even have the most basic understanding when discussing currency and exchange rates. This is exchange rate 101, first grade level exchange rate, and so called gurus and experts don’t even understand it. Amazing that people are taking investment advice from such people.

  10. Tgc March 5, 2013 at 1:37 pm #

    @stew

    Your story makes sense.
    Tho, their currency is not tradable..
    So ur story is flawed.

    I think they will rv. Just because
    Achmed in iraq can’t buy salt from Singe in Kuwait because what good is a IQD to him.
    They cannot leave a whole country out of the rest of the world.
    They have people who live there. Their money isn’t worth anything.
    Maybe to wipe ur butt.
    So they would RV and bring it relevant to existing TRADABLE currency’s.
    In conclusion Iraq civilians cannot live on RPGs and curry, and cannot afford 1660 Iqd snickers bars.
    New world order.

  11. […] proper techniques and security devices. Iraq is ranked as the 8th most corrupted country in 2012. With a budget of 118 billion for 2013, security and defense accounted for 14 percent of the budget, while energy infrastructure accounted […]

  12. […] 139 trillion Iraqi Dinar (IQD), which is about $118 billion in U.S. dollars. Of that amount, about 21% was spent on safety and […]

Trackbacks/Pingbacks

  1. Hundreds Of Al Qaeda Members Escape Iraqi Prisons In Violent Breakout (VIDEO) | Young Progressive Voices - July 24, 2013

    […] proper techniques and security devices. Iraq is ranked as the 8th most corrupted country in 2012. With a budget of 118 billion for 2013, security and defense accounted for 14 percent of the budget, while energy infrastructure accounted […]

  2. Increasing Safety in Iraq Draws Praise from Citizens and Foreign Investors | DinarInsider - July 28, 2014

    […] 139 trillion Iraqi Dinar (IQD), which is about $118 billion in U.S. dollars. Of that amount, about 21% was spent on safety and […]