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Historic Budget Passes with Broad Support
On February 8, Iraq’s Council of Representatives passed a $41.1 billion 2007 budget by an overwhelming majority. The budget enjoyed support from political representatives of all communities in Iraq.
- Historic budget for Iraq with more than $40 billion in Iraqi money helping to meet Iraqi needs. Over $10 billion is dedicated to reconstruction and capital investment this year.
- Overall budget represents a 21 percent increase over the 2006 budget.
Implementing the New Way Forward
- Passage of the budget represents an important component of implementing the new way forward in Iraq, demonstrating that the Iraqi people are taking the lead in determining their future.
- This budget underpins a joint Iraqi-U.S. economic transition effort that complements the joint security strategy and promotes both short-term economic activity and sustainable economic progress.
Boost to Baghdad Security
The budget, providing for $7.3 billion for security-related expenses, is an important boost to the counterinsurgency effort at the start of the Baghdad Security Plan.
- Represents a 35 percent increase over security-related funding last year.
- To complement direct funding for security, the Government of Iraq has also allocated $150 million for demobilization of militias and other combatants. The budget will support economic opportunities and reintegration for militia members and potential recruits.
Iraqi Money Funds Iraqi Reconstruction - Iraqi Government is moving forward on commitments outlined by President Bush and Secretary Rice to fund $10 billion for reconstruction this year.
- Budget includes over $10 billion for capital investment programs for:
- Ministries charged with construction and rehabilitation of vital infrastructure, like the oil ministry which will receive $2.4 billion.
- Provincial Governments which will receive $2.4 billion for execution of decentralized investment and reconstruction plans.
- The Iraqi Government will immediately release 10 percent of the budget, including to the provinces.
Transitioning to Self-Reliance - This budget puts Iraq on the path to strengthen Iraq’s economy with Iraqi resources, capacity and private sector growth.
- Iraqi efforts emphasize job creation – putting more Iraqis to work to strengthen communities and families.
- The Government of Iraq is intensifying its efforts to spend its money in communities, impacting Iraqis’ daily lives.
- Improving budget execution for all chapters of the budget, but especially reconstruction and maintenance of infrastructure, is an Iraqi priority.
- The United States will work closely to help support Iraqi initiatives and reforms intended to accelerate Iraqi spending.
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