Baghdad: Iraq said yesterday that a draft 2007 budget of around $39 billion had been delivered to the cabinet for review, prior to final parliamentary approval.
"The budget is about $39 billion. Today it is presented for the first time to the cabinet," government spokesman Ali Al Dabagh told a news conference.
The 2007 draft compares with a 2006 budget of $34 billion.
The new Shiite-led government of Prime Minister Nuri Al Maliki has promised to strengthen the economy, which officials blame for boosting the ranks of a bloody insurgency aimed at toppling the US-backed government.
Iraq earned around $24 billion in 2005, mostly from oil exports, and Finance Minister Bayan Jabor told Reuters earlier this month he expects a deficit of some $5 billion in 2006.
"The money allocated to buy oil products has been increased from $213 million (167.7 million euros) in August to double that number," Falah Alamri, head of the State Oil Marketing Organisation, Somo, told Dow Jones Newswires by telephone. He said a similar amount would be allocated for September.
A liter of gasoline is now sold in the black market in Baghdad for $1.30 (1 euro), while its official price is 17 US cents (0.13 euro). The price of a cooking gas cylinder in the black market is $18 (14 euros), while its official price is only a fraction of a dollar.
