Appendix 1
2004 Iraqi Budget
RESOURCES
Projected resources available for 2004 are expected to be $20096.9 million. This amount consists of
opening financial capital (the opening balance of the Development Fund for Iraq), net capital
inflows, plus revenues (primarily oil).
Table 1 - Total Resources $ millions
Opening financial capital (1 Jan 2004) 5,410.8
plus Net Capital Inflows 200.0
plus Revenues 14,486.1
TOTAL RESOURCES 20,096.9
Opening Balance
On December 31st 2003 there was $ 5410.8 million remaining in the DFI account.
Projected net capital inflows for 2004
Net capital inflows are projected to be US$ 200 m. These consist to date of transfers of Iraqi assets
from Jordan.
Table 2 - Capital inflows $ millions
Capital Flows in
Transfer of Iraqi assets from abroad 200.0
Less Capital Outflows 0.0
TOTAL NET CAPITAL INFLOWS 200.0
Projected revenues in 2004
Projected revenues for 2004 total US$ 14486.1 m. These revenues will come primarily from oil
exports. A proposed Civil Service Pension Contribution and Reconstruction Levy to be implemented
in April 2004 will also contribute to total revenues.
Oil revenues are estimated using a prudent assumption of a gradual fall in net oil prices from a high
of $26 per barrel in January to $21 per barrel in June. Oil exports are assumed to reach 1.9 million
barrels per day by the end of the year. If oil prices rise significantly or exports are greater than
expected then there could be a very notable increase in net revenues - but for budgeting purposes
CPA took a more cautious approach.
Table 3 - Revenues $ millions
Oil Revenues 14,175.3
Interest Income 10.0
Reconstruction Levy 115.0
Personal Income Tax 5.0
Civil Service Pension Contribution 67.6
User Pay Charges 64.2
Other Taxes and Charges 49.0
TOTAL REVENUES* 14,486.1
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EXPENDITURES
Total Expenditures in 2004 are projected to be $ 19926.5 million.
Table 4 - Total expenditures $ millions
Total Staff Expenditure 2,586.3
Total Operating Expenditure 1,974.5
Total Ministry Capital Projects 2,531.7
Total Transferred Expenditures 10,588.5
Total Foreign Obligations 1,448.6
Total Salaries and Retirement Rewards 797.0
TOTAL EXPENDITURES 19,926.5
Staff Expenditures
Table 5 - Staff expenditures $ millions
Ministry Salaries (including reserve for new
salary scale) 1,867.1
Centrally Funded Salaries 465.0
Hazardous Duty Pay 150.0
Facility Protection Service Guards 60.4
Iraqi Civil Defence Force Pay 43.8
TOTAL STAFF EXPENDITURES 2,586.3
Non-staff Operating Expenditures
Table 6 - Operating costs $ millions
Normal Ministry Operating Expenditure 1,221.4
Railroad Security 50.0
Pharmaceuticals 578.0
0
TOTAL OPERATING COSTS* 1,974.5
*Listing does not include all line items, hence columns will not necessarily sum up to total operating costs.
Ministry Capital Projects
Spending on capital projects by ministries is projected to be US$ 2531.7 m. This includes investments in
infrastructure projects not included in the US Supplemental Appropriation.
Table 7 - Ministry capital projects $ millions
Electricity Projects 900.0
Transportation Projects 150.0
Education Projects 150.0
Telecommunications Projects 130.0
Housing Projects 100.0
Oil Projects 200.0
TOTAL MINISTRY CAPITAL
PROJECTS* 2,531.7
*Listing does not include all line items, hence columns will not necessarily sum up to total capital investment.
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Transferred Expenditures
Projected transferred expenditures for 2004 are US$ 10588.5 m.
Transferred expenditures includes spending for national programs or items that will benefit the nation as a
whole. The major spending items include the Public Distribution System, fuel imports, grants to regions,
state owned enterprise support, additional security spending and agricultural subsidies.
Table 8 - Transferred expenditures $ millions
Interest on Treasury Notes 213.0
Public Distribution System 2,400.0
Fuel Imports 2,100.0
Transfer Payments (was Contingency Fund) 1,670.8
Local/Regional Government Grants 830.8
Regional Development Projects 600.0
Commanders Emergency Response Program 70.0
Rapid Regional Response Programme Funds 225.0
State-Owned-Enterprise restructuring 381.3
State-Owned-Enterprise salary support 379.7
Economic Restructuring Programs 134.0
Agricultural Subsidies 200.0
Additional Security Spending 500.0
Oil Export Production Fee 85.2
Debt Negotiations Costs 50.0
Reconciliation of External Debt 4.0
Oil for Food Audit 3.0
Haj Subsidies 37.5
Other Measures 133.0
Nation Building 571.2
0
TOTAL TRANSFERRED EXP. 10,588.5
Foreign Obligations
Higher than projected oil revenues mean that Kuwaiti War Reparations are higher, as these are 5% of
gross revenues. Funding for repayment of IMF and World Bank arrears has also been added. These
combine to projected spending for 2004 by US$ 1448.6 m.
Table 9 - Foreign obligations $ millions
Kuwaiti War Reparations 708.8
International Monetary Fund and
World Bank Arrears 453.3
Oil for Food Contracts 269.5
Demining 17.0
TOTAL FOREIGN OBLIGATIONS 1,448.6
Salaries and Retirement Rewards
#REF!
Table 10 - Salary & retirement rewards $ millions
Pensions and other transfer payments 547.0
Stipends to Demobilised Military 250.0
TOTAL SALARIES & RETIREMENT 797.0
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