Budget year 2012

[audigger]

Announced the Council of Ministers, today Sunday, 09/18/2011, that the 2012 budget next year will be approximately 131 trillion dinars, the equivalent of $ 110 billion, an increase of 36 percent from last year's budget, and is the largest in the history of Iraq.

Ali al-Dabbagh, spokesman for the government in a statement issued on Sunday, 18/9/2011: The Council of Ministers discussed in the meeting on Sunday, the draft law of the federal budget for 2012, which includes allocating (131) trillion dinars total federal counterbalance an increase of 36% for 2011.

Al-Dabbagh said: that the total federal income of (107.7) trillion dinars a deficit of a total of $ (3.23) trillion dinars is covered by the cash retained from the balance of 2011 and internal and external borrowing, and the proportion of savings is expected to increase selling prices or increased oil production or borrowing from the IMF and World Bank.

Dabbagh said: that the budget includes the allocation of (20) trillion dinars to promote security, stability and capacity-building of military, security, and (11) trillion dinars for the expenses of the compensation and debt, and (15) trillion dinars for support to social strata, and (3.4) trillion dinars for support to companies public bodies and self-funded.

Ali al-Dabbagh: The budget includes a (570) billion dinars for the agricultural sector, and (5) trillion dinars for the industrial sector, energy, and (269) billion dinars for the transportation sector, and (5.10) trillion dinars to the education sector and (3.4) trillion dinars for the reconstruction of and development projects, regions and provinces, and (6.1) trillion dinars for projects related to petro-dollars to the oil-producing provinces, and rotate the amounts are not incurred in 2011.

Dabbagh said that the draft budget includes the exemption of citizens from the amount of interest on loans granted to them by both the Land Bank and Agricultural Bank and the Housing Fund and to continue to grant these loans without interest to the citizens.

[easyrider]

131 trillion is a lot of money to budget thats just insane.

Hoping for a nice RV

Edited September 20, 2011 by easyrider

[Elixirbaby]

131 trillion is a lot of money to budget thats just insane.

Hoping for a nice RV

Hey easy. Question. Could they under current monetary system support that budget or would an RV support it better?

Thanks

Go RV

[easyrider]

Hey easy. Question. Could they under current monetary system support that budget or would an RV support it better?

Thanks

Go RV

they have to adjust the exchnage rate prior to implementing the 2012 budget they will not go into a budget without adjusting the rate to the 2012 budget. So yes they already know the rate and what the value will be for the dinar.

This has been metioned in previous articles that the adjusting would be prior to implementaion of the 2012 budget and with the goverments fiscal year starting october 1st this is the time to adjust it and add value to it IMHO.

Edited September 20, 2011 by easyrider

[thatoneguy]

Just for grins and giggles, could anyone reading this juggle the budget numbers and come up with a possible rate? The U.S. budget for 2012 is roughly 6.2 trillion (i think), and IF Iraq were to LOP, that would put their budget @ the obvious 131 billion, which I can't see possible. So just curious if anyone could put an educated stab considering GDP, reserves, etc; at what a speculative rate COULD be. Hell, might as well throw in a date too! BUT WE DO KNOW FOR A FACT THAT THIS RIDE WILL END BY THE FISCAL YEARS END OF 2012! Per an article recently added to DV stating Shab's wanted more investors to play in Iraq.

I can hold out another year, or much longer, but this sure would make for a nice X-mas present! Or new years, or valentimes day, or st. pattys day, or ......

[easyrider]

Just for grins and giggles, could anyone reading this juggle the budget numbers and come up with a possible rate? The U.S. budget for 2012 is roughly 6.2 trillion (i think), and IF Iraq were to LOP, that would put their budget @ the obvious 131 billion, which I can't see possible. So just curious if anyone could put an educated stab considering GDP, reserves, etc; at what a speculative rate COULD be. Hell, might as well throw in a date too! BUT WE DO KNOW FOR A FACT THAT THIS RIDE WILL END BY THE FISCAL YEARS END OF 2012! Per an article recently added to DV stating Shab's wanted more investors to play in Iraq.

I can hold out another year, or much longer, but this sure would make for a nice X-mas present! Or new years, or valentimes day, or st. pattys day, or ......

their governments fisccal year starts october 1st of 2011 not in 2012 just a heads up.

rate .86-1.17 to start with by end of september or early october of this year.

Edited September 20, 2011 by easyrider

[Elixirbaby]

they have to adjust the exchnage rate prior to implementing the 2012 budget they will not go into a budget without adjusting the rate to the 2012 budget. So yes they already know the rate and what the value will be for the dinar.

This has been metioned in previous articles that the adjusting would be prior to implementaion of the 2012 budget and with the goverments fiscal year starting october 1st this is the time to adjust it and add value to it IMHO.

Thanks easy. I personally would be very happy with either 86 or 1.17.

Go RV

[thatoneguy]

Not too Shabibi! I think we'd all like to see them hover around the dollar or pound mark.... Then land the daggone thing! Man I hope this thing is ready to pop before the fiscal year begins. I guess it has too, huh? If not, more hurrying up and waiting.

[captl1]

Easy if I remember correctly did they not state the exhange would be 1to1?

[thatoneguy]

Not too Shabibi! I think we'd all like to see them hover around the dollar or pound mark.... Then land the daggone thing! Man I hope this thing is ready to pop before the fiscal year begins. I guess it has too, huh? If not, more hurrying up and waiting.

Just in case Obama gets that tax deal passed on the RICH!!! WooHoo!

[FrankenSLI]

Easy if I remember correctly did they not state the exhange would be 1to1?

I would be happy with .10 to one at this point. Of course I would do a happy dance if we got 1 to 1!!

[easyrider]

Easy if I remember correctly did they not state the exhange would be 1to1?

yes they have but it would fall about .86 to our USD.

The reason being a 1 to 1 that i can think of is it will ease transactions as the adjust prices.

Edited September 20, 2011 by easyrider

[Dalite]

131 trillion is a lot of money to budget thats just insane.

Hoping for a nice RV

Probably 90 trillion for Iraq, and 41 trillion for the MPs to keep them from stealing from the other 90 trillion

[Mazzz27]

where are the loppers at for this one???

[caz1104]

where are the loppers at for this one???

patience grasshopper

[FrankenSLI]

where are the loppers at for this one???

It is lopper nap time. Just wait awhile...

[Nelg]

Probably 90 trillion for Iraq, and 41 trillion for the MPs to keep them from stealing from the other 90 trillion

:lol: :lol: Happy in the USA all the time! Good point Dalite.

[keylime]

their governments fisccal year starts october 1st of 2011 not in 2012 just a heads up.

rate .86-1.17 to start with by end of september or early october of this year.

Actually Iraq's fiscal year coincides with the "Calendar Year" Jan to Dec. Not Oct.

http://www.indexmund...iscal_year.html

http://www.nationmaster.com/graph/eco_fis_yea-economy-fiscal-year

Edited September 20, 2011 by keylime

[zaborniake]

Probably 90 trillion for Iraq, and 41 trillion for the MPs to keep them from stealing from the other 90 trillion

Ha! That's true. Scumbags.

Dalite,

What are your thoughts on the budget versus the total amount of dinar in circulation following a RD? If they lop and knock the money block down to around $26-$30B, can the budget be almost four times that?

[HopefulTxn]

their governments fisccal year starts october 1st of 2011 not in 2012 just a heads up.

rate .86-1.17 to start with by end of september or early october of this year.

FYI easy, Iraq's fiscal year is a calender year running from January 1st to December 31st. Link

The US has fiscal year that runs from Oct 1st to Sept 30th. Link

Edited September 20, 2011 by HopefulTxn

[HopefulTxn]

131 trillion is a lot of money to budget thats just insane.

Hoping for a nice RV

It is a large budget for them. But we have to keep in mind that last years budget was 96 trillion, which is still a lot of dinar. Link

Edited September 20, 2011 by HopefulTxn

[cooked]

How do you pass a budget for more dinar than are in circulation? Somethings gotta give. How about a RV, that would make things all nicey nicey.

Here little pink piggy piggy

[Dalite]

Ha! That's true. Scumbags.

Dalite,

What are your thoughts on the budget versus the total amount of dinar in circulation following a RD? If they lop and knock the money block down to around $26-$30B, can the budget be almost four times that?

If they do end up taking the zeros, the budget becomes theoretically becomes $141 billion dinar, around one dollar each.

But here is the kicker... Contracts paid in Euro and USD would not change, so they would not be affected.

That becomes a complex problem.

But the budget is the responsibility of the GOI, and has to be supported by production; which is 95% oil. Due to the volatility, they have to under project earnings, based on average oil price per barrel. This is a possible way to curb some deficits.

The big row between Maliki and Shabibi is that Shabibi refused to loan CBI reserves to cover the budget deficit; letting Maliki know on no uncertain terms the GOI had to cover their own budget.

If they RD, the cash certainly goes down from trillions to billions, but foreign reserves retain their value. The current foreign reserves can cover 58 billion Dinar at 1:1 ratio, and the economy would start at 30 billion at 1:1. The surplus reserves would allow the money to almost double, or the exchange rate to go considerably higher before the extra 28 billion USD (actually, basket of Dollars, Euro, Pounds and gold valued at $58 billion total) ran against the wall in their ability to back the exchange rate.

The more oil production improves, and agriculture and manufacturing kick in, the higher the exchange rate can get pushed at the current level of cash printed. If they increase the cash supply, the reserves can still support, up to 28 billion more at 1:1; less if the exchange rate is bumped higher.

Production goes through the GOI, but the resulting inflation from increased production is Shabibi's worry. Curbing it .would be the Motivating factor for exchange rate increases. This is where Shabibi is at now; approaching the 10% mark due to increases in production.

That seems to be why they are getting antsy.

I don't know if this really addresses your question, as I believe from what we have seen in the past weeks, that the GOI is obligated to fund their budget, but they shoould have first shot at oil payments, which are in dollars.

This is one of the problems in predicting the DFI proceeds now in the fed bank in NYC. Lots flowing in from oil payments, lots going out for the GOI, little going out to the people.

I am guessing when Chapter 7 is released, the GOI gets a chance to gut the fund, which now should also contained the seized assets that have been coming in. I would like to understand more about that process.

Sorry for rambling; and certainly some guessing on my end that welcomes corrections or additions. But, that is the separate flows, as I understand it.

[eddiemac]

Not too Shabibi! I think we'd all like to see them hover around the dollar or pound mark.... Then land the daggone thing! Man I hope this thing is ready to pop before the fiscal year begins. I guess it has too, huh? If not, more hurrying up and waiting.

Not too Shabibi!

Good one, 1plus for you..............

[HopefulTxn]

How do you pass a budget for more dinar than are in circulation? Somethings gotta give. How about a RV, that would make things all nicey nicey.

Here little pink piggy piggy

Their budgets have exceeded their local currency levels since at least 2009.

Seems most of their expenditures would be to companies foreign to Iraq, so they could simply pay with the funds received from their oil sales which wouldn't require huge sums of local currency to be used.