Iraq proposes increased draft budget for 2012

02 February 2012

Draft budget now at $115bn instead of the $100bn proposed in December

Iraqi lawmakers have proposed an increased draft budget, lifting expenditure for 2012 to $115bn, instead of the $100bn proposed in December.

The budget also allocates $15bn for proposed infrastructure projects, says Abdul-Hussein Abtan, a member of the parliamentary Economy and Investment Committee, the local AK News reports.

Iraq’s initial proposed budget of $100bn is its largest ever. The government approved the draft budget in December 2012, but it requires parliamentary approval to become law.

It originally called for $31.8bn in new capital spending, up almost 25 per cent on the 2011 budget, as well as $68.3bn for operating expenses, which includes salaries and food subsidies, again up 20 per cent on 2011.

The budget would be based on an assumption of oil prices remaining above $85 a barrel and exports averaging at least 2.625 million barrels a day (b/d), according to a 30 January report by the US’ Special Inspector General for Iraq Reconstruction (SIGIR).

In 2011, Iraq’s oil exports averaged only 2.17 million b/d.

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