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BAGHDAD - Iraq has prepared a US$42 billion ($55.9 billion) budget for 2008, an increase of US$1 billion on this year, says Finance Minister Bayan Jabor.
Jabor said US$10 billion would be spent on investment projects outside the Baghdad region, focusing on schools and water projects. An additional US$4 billion unspent this year would be rolled over into next year, boosting spending to US$46 billion.
"It will include investment money for US$10 billion and it targets supporting the southern, northern and western provinces. Their share will be increased by 55 per cent," he said.
"Also some amounts from 2007 will be given to the ministries and provinces. This will give extra money for the budget which means it is around US$46 billion."
Jabor said Iraq calculated 2008 revenues based on assumed oil exports of 1.7 million barrels per day at US$50 per barrel. Average exports in 2007 have been 1.6 million bpd, he said.
The 2008 budget also assumes an exchange rate of 1260 dinars to the US dollar, the same as this year. But the government may strengthen the Iraqi currency to 1200 to the dollar during the course of the year, Jabor said.
The Government strengthened the dinar by 13 per cent against the dollar last year after raising interest rates to limit the use of dollars in the economy and stem inflation. This helped boost central bank foreign currency and gold reserves to US$22 billion, he said.
Iraq's dependence on oil revenues will fall to 88 per cent next year from 94 per cent because of income from telecommunications .
- Reuters
