KRG bud­get to in­crease next year

2014 bud­get to reach IQD 16 tril­lion

The Kurdish Globe - - NEWS -

As the bud­get for fed­eral gov­ern­ment of Iraq is es­ti­mated to be IQD 157.7 tril­lion (ap­prox­i­mately US$ 131 bil­lion) for the com­ing year of 2014, the share of the Kur­dis­tan Re­gion in the bud­get is ac­cord­ingly es­ti­mated to be roughly IQD 16 tril­lion (ap­prox­i­mately US$ 13.3 bil­lion), which is about IQD 750 bil­lion (US$ 625 mil­lion).

Th­ese fig­ures are still rough es­ti­mates since ac­cord­ing to Na­jiba Na­jib, Kur­dish mem­ber of the Iraqi Coun­cil of Repre- sen­ta­tives on the Kur­dis­tani Bloc, ar­gues that due to ten­sions be­tween Er­bil and Bagh­dad the amount of oil ex­ports from Kur­dis­tan Re­gion has not yet been agreed.

The Min­istry of Fi­nance of the Kur­dis­tan Re­gional Gov­ern­ment ( KRG) has al­ready started the prepa­ra­tions for the 2014 bud­get draft.

Dler Tariq, of­fi­cial spokesper­son of the min­istry stated that his min­istry has al­ready sent re­quests to KRG min­istries for their bud­gets within 30 days.

Re­ports say that the draft bud­get of Iraq is ex­pected to be voted for by the Iraqi Coun­cil of Min­is­ters on Septem­ber 15th, af­ter which it will be sub­mit­ted to Par­lia­ment for re­view and fi­nal ap­proval, which is due be­fore the end of the cur­rent year.

Due to the fact that last year, un­like pre­vi­ous years, the min­istry was able to pre­pare the bud­get be­fore the end of the year; the Re­gion’s Prime Min­ster Nechir­van Barzani has ex­pressed his grati- tude for the min­istry’s ef­forts and has en­cour­aged them to ac­cel­er­ate the process even fur­ther this year, ar­gued Tariq.

The to­tal rev­enues of the coun­try are es­ti­mated to be IQD 143.3 tril­lion, which in­di­cates that the gov­ern­ment will run a deficit of IQD 14.7 bil­lion.

The rev­enue es­ti­mate is based on sell­ing 3.5 mil­lion bar­rels of oil per day at a price of US$ 90 per day and an ex­change rate of US$1:IQD1016.

The to­tal bud­get of 2014 is 10% higher than the 2013 bud­get of IQD 139 tril­lion (ap­prox­i­mately US$118 bil­lion.)

The Kur­dish MP, how­ever, doubts that Iraq would be able to col­lect such rev­enue since rarely the coun­try has been able to ex­port 3.5 mil­lion bar­rels of oil per day due to many tech­ni­cal and po­lit­i­cal fac­tors, in­clud­ing ten­sions be­tween Bag­dad and Er­bil.

Ac­cord­ing to MP Na­jib, this year more fo­cus will be on in­creas­ing in­vest­ment bud­get and cut­ting op­er­a­tions bud­get, which “will have pos­i­tive im­pacts on the de­vel­op­ment of Iraq.”

“More­over, the bud­get of mil­i­tary and se­cu­rity sec­tors will in­crease, since af­ter many years of bans against weapon pur­chase, Iraq is now able to buy arms and strengthen its mil­i­tary and de­fense sys­tems,” MP Na­jib said.

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