Iraq Approves $100bn Budget for 2012

Iraq’s Cabinet has approved a federal spending plan of almost $100 billion for 2012.

The budget is based on an oil price of $85 a barrel and is smaller than the $112 billion spending plan discussed by the Cabinet in September, which was based on an oil price of $90 a barrel.

The deficit will be about 16 trillion dinars ($14 billion).

Revenue projections are based on exports of 2.6 million barrels of oil a day, including 175,000 barrels from the northern Kurdish region.

Iraq's 2011 budget was $82.6 billion, based on an average oil price of $76.50 per barrel and 2.2 million bpd in crude exports.

Iraq also has $4.5 billion in International Monetary Fund loans available should it need additional funds, government spokesman Ali al-Dabbagh (pictured) said.

(Sources: Bloomberg, Reuters)

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