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Iraq's 2012 budget submitted to Council of Ministers

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Red Lily


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Saturday, 24 September 2011, 12:09 GMT
Iraq's 2012 budget submitted to Council of Ministers

The Globe
The Kurdistan Regional Government Ministry of Finance said it does not know the details of the process of preparing Iraq's 2012 budget, which was prepared by the Iraqi Ministry of Finance and Economy and
submitted to the Iraqi Council of Ministers on Sept. 15.
A source from the KRG Ministry of Finance said on Sept. 18 that the central government's Ministry of Finance and Economy has prepared and submitted next year's budget to the cabinet without consulting the KRG and including it in the process of preparing the budget draft and allocating Kurdistan Region's share of the budget.
"We are in no way aware of the details of the budget," stated the KRG Ministry of Finance official.

Dr. Fazil Nabi, deputy minister of finance and economy of the Iraqi Government from the Kurdistan coalition, on the other hand, refutes the claims and says KRG contributed in the setup of Iraq's budget strategy, and no obstacles have been created for the Region.
Dr. Nabi said in an interview with The Kurdish Globe that he was surprised with the statements of the KRG officials regarding the financial issues between Erbil and Baghdad.

"These statements are not accurate," stated Dr. Nabi. "There is no financial issue between Erbil and Baghdad. An adviser of the KRG Ministry of Finance and the KRG representative at the Iraqi Ministry of Finance were present during budget strategy drafting sessions, and both were also present at the Beirut and Istanbul meetings."

Dr. Nabi also added, "Secondly, during the discussions of the Iraqi ministry with its institutions about the distribution of the shares in the institutions' budgets, which is normally conducted after drafting the budget, has no relation with the KRG and there is no need for its participation in the discussions as it is only related to the central government and shares are calculated based on the equations politically agreed upon with the KRG beforehand."

According to the deputy minister of finance, according to the agreement between KRG and the central government, Kurdistan has a 17 percent share of the total budget after deducting the presidential budgets ? the budgets of the three presidencies of the central government. "This has become a non-debatable equation."

Kurdistan has some ministers in the Baghdad government, and Dr. Nabi claims Kurdistan Region should not necessarily participate in internal discussions about each institution's budget allocation.
"Such discussions are normally done within the respective ministries and institutions, with their officials and advisers, whether the ministry has a Kurdish minister or not."
Regarding claims about delays in sending Kurdistan Region's budget share, Dr. Nabi says all disbursements were made on time, with no delays or shortcomings.

"One-twelfth of the money was sent to the KRG before any other ministries," Dr. Nabi told the Globe. "To prove this, we are able to provide necessary documentation, and especially last year, 100 percent of the money was disbursed, while there were deficiencies in the Iraqi ministry disbursements."

Dr. Nabi says the operational budget is paid in monthly installments, and the KRG installment is disbursed on the first of every month.
Regarding the investment budget, the Iraqi Ministry of Finance and Economy official says it is not in its hands but rather directly controlled by the Ministry of Planning and the KRG Ministry of Planning coordinates with its central government counterpart, then it submits its projects.

"Whenever Ministry of Planning has sent us disbursement orders for KRG projects, we have immediately provided the funds, because it is not a one-time budget disbursement but rather handled case by case," explained Dr. Nabi.

Dr. Nabi described all such claims about his ministry as baseless allegations, and says that whoever does not believe in their statements can ask the KRG Ministry of Finance adviser, the KRG representative at the Iraqi Ministry of Finance.

The Iraqi deputy finance minister reiterated that his ministry has not created even smallest obstacle for the Kurdistan Region and there are no problems or issues between his ministry and its KRG counterpart. He said that whoever made this claim can go on TV and declare it. He said this would make it possible to respond to the allegations and provide proof and documentation.
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