Iraqi Dinar – Dinar

Iraqi parliament approves 2010 budget

January 27, 2010

The Iraqi parliament on Tuesday passed a 2010 budget that sets federal spending at 84.7 trillion Iraqi dinars (around $72.4 billion) and a deficit for this year of 22.9 trillion dinars ($19.6 billion). The deficit amounted to 27 percent of total spending and was to be financed with surpluses from previous years and also through domestic and external borrowing, the budget law said. “The parliament has approved today the budget of 2010,” said Kurdish member of parliament, Sami al-Atrushi, a member of the chamber’s finance committee. The budget law includes authorization for Iraq to seek a $4.5 billion financing arrangement with the International Monetary Fund and contemplates $2 billion in financing by the World Bank.

The total income of the Iraqi government was estimated to reach 61.7 trillion dinars ($52.8 billion). The oil producing country relies on crude exports for more than 95 percent of government revenue. Passage of the budget was held up for weeks by negotiations over additional spending. Lawmakers said political dealmaking also played a role.

They said rivals of Prime Minister Nuri al-Maliki tried to demand that in return for passing the budget the government had to agree to a law that would prevent Maliki from using any state resources in the campaign for a March 7 election.