Next year’s Budget consistent with the conventions of the International Monetary Fund

The Ministry of Finance has prepared a budget in 2012 in line with the agreement with the International Monetary Fund and the amounts necessary for lifting the value of its investment.

The Deputy Minister Fadhil Nabi told the Kurdish news agency (Rn) that his ministry has worked to raise money value compared to the value of investment funds within the budget value of Lot 2012. ”

He added that “the balance of 2012 is ready for submission to the House of Representatives after Eid al-Adha holiday. He said,” the budget in 2012 will focus on development projects with ease in the proportion of operational projects. ”

He called on the Iraqi Central Bank last October and the Ministry of Finance to review the operational part of the budget in 2012.

Economists and experts predict that the budget of 2012 may be delayed in the House of Representatives because of political differences between the parliamentary blocs arise with a discussion of financial budgets annually.

Iraq, which is a member in OPEC, relies on oil revenues to finance about 95% of the annual budget. The estimated budget for Iraq in 2012 is up to $ 112 billion, including 17 billion for security and arms, up to 36% from last year, but a deficit of $ 20 billion.

Baghdad announced in (18/9/2010) that Iraq’s budget for next year 2012 will amount to $ 112 billion, up 36% from the current year budget 2011, but a deficit of $ 20 billion and it has been allocated $ 17 billion for security and armament.

Iraq Pads Currency Reserves On High Oil Prices

Iraq depends on oil revenues for about 95 percent of its budget.

September 07, 2011

BAGHDAD -- The Iraqi Central Bank has announced a large increase in the country's foreign-currency reserves, RFE/RL's Radio Free Iraq reports.

Mudher Muhammad Salih, an adviser to Central Bank Governor Sinan al-Shabibi, told RFE/RL on September 6 that the bank's reserves "are now at about $58 billion."

He said that was an increase from the $50 billion in foreign currency reserves it had at the end of 2010.

Salih added that the bank had recently succeeded in controlling the inflation rate, which he said in recent years had increased at a high rate and was 7.1 percent in July.

He said the Central Bank would continue to obtain different foreign currencies and increase its overall amount of foreign-currency reserves in order to protect the value of the Iraqi dinar, which he said was a "main goal" of the bank.

Iraq's foreign-currency reserves are 45 percent in dollars, 45 percent in euros, and 10 percent in British pounds.

Iraq depends on oil revenues for about 95 percent of its budget and the increase in foreign-currency reserves thus far this year is due to higher world prices for oil. Iraq has earned some 34 percent more from oil through the first five months than it had budgeted.

Economic experts welcomed the announcement about the country's currency reserves but warned that the total was still not high enough.

Iraqi economist Hilal al-Tahhan said the currency reserves should be roughly equivalent to Iraq's annual budget, which is about $79.6 billion.

Iraq's Baghdad-based Central Bank, which is an independent institution, has branches in Basra, Sulaymaniah, Irbil, and Mosul.

U.S. Hands Massive Air Base Over To Iraq

November 09, 2011

The U.S. military has handed over to the Iraqi government its second-largest base in Iraq.

Joint Base Balad -- a joint army and air force complex north of Baghdad -- housed some 36,000 American troops and contractors at the peak of the war.

A spokesman said that "with 27,500 landing and takeoffs a month, Balad was second only to London's Heathrow airport in traffic worldwide in 2006."

It was returned to Iraqi control on November 8 with the departure of the last members of the 332nd Air Expeditionary Wing, the last unit to leave the base.

Under a bilateral agreement, all U.S. troops in Iraq are to leave the country by year's end.

compiled from agency reports

General Petraeus on investing in Iraq