Iraq approves $100bn draft budget for 2012

06 December 2011

Budget will leave a projected deficit of $14.5bn

Iraq’s cabinet has approved a draft 2012 budget of ID117 trillion ($100bn), leaving the country with a projected deficit of $14.5bn.

The draft budget requires parliamentary approval. It forecasts total government expenditure at $68bn, including $31.6bn for investment, according to cabinet secretary Ali al-Alaq, Reuters news agency reports.

“The cabinet approved the budget today. It will be sent to parliament in the next two or three days,” says Al-Alaq.

Revenues are based on an average oil price of $85 a barrel, with exports at 2.625 million barrels a day (b/d). This will include as much as 175,000 b/d from the semi-autonomous Kurdistan region of northern Iraq. This year, oil exports account for as much as 89 per cent of government revenue.

The budget has undergone a number of changes since it was first drafted. The cabinet initially considered a $112bn budget, based on an average oil price of $95 a barrel, but this was met with criticism from the cabinet’s finance committee, which warned a dip in prices could impact Iraq’s plans (MEED 30:11:11).

It remains significantly higher than this year’s $82.6bn budget. Total revenue from oil exports stood at $69.1bn in October, with exports averaging 2.17 million b/d. Oil prices over the year have stayed about $104 a barrel.  

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.