The total budget has risen steadily since 2007, with just one drop in 2009 (because of the decline in oil prices that year) (see Table 8.4). In 2013, the budget increased by 18% compared to 2012. share also Kurdistan’s increased in this year but by just 14%, from ID12.6 trillion ($10.6 billion) to – ID14.6 trillion ($12 billion). The fact that share is not rising at the Kurdistan’s same pace as sovereign expenditure means that in real terms, it is declining. The law stipulates that sovereign expenditure should be agreed with regions and provinces, but this was not the case with the 2013 budget, which was passed without KRG agreement (MEES, 2013A). The KRG boycotted the budget in protest at the fact that the federal government had paid only ID750 billion ($645 million) towards oil costs, less than a fifth of the ID4 investors’ trillion ($3.5 billion) the KRG had demanded (MEES, 2013A). The central government in turn defended its refusal to pay, arguing that by reducing its oil exports and keeping the oil for domestic consumption (see section 8.9.3), the KRG had breached its budget conditions. Table 8.6: Calculation of share of the budget Kurdistan’s 2012 ID billions 2013 ID billions Total budget 117,123 138,424 less sovereign expenditures: Council of Representatives 283 228 Human Rights Committee - 20 Commission of Integrity 62 80 Presidency 113 95 Council of Ministers 81 95 Prime Minister 418 396 Deputy Prime for - 4 Minister’s Office Energy Affairs Deputy Prime for - 8 Minister’s Office Economic Affairs Deputy Prime for - 8 Minister’s Office Social Affairs National Security Council 11 19 Iraqi Council for Radioactive Sources 3 4 General Office 63 65 President’s Iraqi National Intelligence Service 223 274 General Inspector Intelligence 4 - Service Foreign Ministry 451 604 Border and Nationality 938 1,259 Defence 7,061 9,206 Interest due to World Bank 10 8 Interest due to Arab banks 12 8 Interest due to other foreign 6 25 agencies Interest on bonds for private sector 189 189 debts
The total budget has risen steadily since 2007, with just one drop in 2009 (because of the decline in oil prices that year) (see Table 8.4). In 2013, the budget increased by 18% compared to 2012. Kurdistan’s share also increased in this year – but by just 14%, from ID12.6 trillion ($10.6 billion) to ID14.6 trillion ($12 billion). The fact that Kurdistan’s share is not rising at the same pace as sovereign expenditure means that in real terms, it is declining. The law stipulates that sovereign expenditure should be agreed with regions and provinces, but this was not the case with the 2013 budget, which was passed without KRG agreement (MEES, 2013A). The KRG boycotted the budget in protest at the fact that the federal government had paid only ID750 billion ($645 million) towards oil investors’ costs, less than a fifth of the ID4 trillion ($3.5 billion) the KRG had demanded (MEES, 2013A). The central government in turn defended its refusal to pay, arguing that by reducing its oil exports and keeping the oil for domestic consumption (see section 8.9.3), the KRG had breached its budget conditions. Table 8.6: Calculation of Kurdistan’s share of the budget 2012 ID billions 2013 ID billions Total budget less sovereign expenditures: Council of Representatives 117,123 283 138,424 228 Human Rights Committee - 20 Commission of Integrity 62 80 Presidency 113 95 Council of Ministers 81 95 Prime Minister 418 396 Deputy Prime Minister’s Office for Energy Affairs - 4 Deputy Prime Minister’s Office for Economic Affairs - 8 Deputy Prime Minister’s Office for Social Affairs - 8 National Security Council 11 19 Iraqi Council for Radioactive Sources 3 4 General President’s Office 63 65 Iraqi National Intelligence Service 223 274 General Inspector Intelligence Service 4 - Foreign Ministry 451 604 Border and Nationality 938 1,259 Defence 7,061 9,206 Interest due to World Bank 10 8 Interest due to Arab banks 12 8 Interest due to other foreign agencies 6 25 Interest on bonds for private sector debts 189 189