Well here is the Iraqi Plan/Blueprint for the Dinar.
Minister of Finance: support of oil derivatives continuous
Salary increases are calculated from this month, the dollar worth 1260 dinar this year and will drop to one thousand dinar soon
Translated by IRAQdirectory.com - [21/01/2007]
The Minister of Finance denied that the 2007 budget had lifted support for oil derivatives, and confirmed that his ministry had allocated the funds required for the new salary scale which will be implemented this month, but the Parliament did not approve the plan of implementation so far, pointing out that the value of the Iraqi dinar against the dollar will be 1260 dinar for this year with putting a fiscal policy to restore the strength of the Iraqi dinar.
Minister of Finance, Baqer Azzubaidi, said that: the value of crude oil pumped from Iraqi oil fields to the refineries that belong to the Iraqi Oil Ministry worth seven billion dollars, which represent the government support for petroleum products; also, three billion dollars have been allocated from the financial budget to cover the expenses of constructing new refineries and maintaining the current ones, with a further $ 300 million to buy kerosene.
Azzubaidi explained that the revenues of selling petroleum products would remain in possession of the Ministry of Oil to be used for sustaining and developing other oil projects, pointing out that lifting the support on oil derivatives has only included the high-quality imported gasoline which is used in modern cars.
He also explained that the Ministry of Oil can purchase the necessary materials used in improving the derivatives from its own budget.
As for the salaries of government employees, the Minister of Finance said that: his ministry had issued directives to pay the salaries according to the new salary scale, but the Parliament has delayed the ratification on implementing the plan due to the lack of quorum which caused the delay in preparing the Parliament's own budget, approving the budget of the Supreme Judiciary Council and delaying the government from presenting the budget to the Parliament.
He pointed out that the new applications of Kurdistan government; including the deduction of its imports directly from the various imports, added another reason to delay the presentation of the budget.
He explained that the Ministry of Finance has put figures for the budget of the Ministry of Defense, considering it as a sovereign Ministry to settle its issue among the parties which called for considering it as a non-sovereign one.
Azzubaidi emphasized that the Ministry of Finance and in consultation with the Central Bank seeks to identify the exchange rate of the dollar at 1260 dinar during the this year. It also laid down a plan to restore the Iraqi dinar to its former era during the coming three years expressing his hope to stabilize its exchange rate at 1000 dinar for the dollar during the coming period. He pointing out that the inflation is not a fixed situation but a temporary one, and that one of its causes is the crisis of leaking goods into the Iraqi depths from the ports because of the terrorist operations; also, the rise of the prices of oil derivatives during crises forms another cause for inflation.
Regarding the current year budget, Azzubaidi described it as ambitious; eight billion dollars have been allocated for security for the first time, despite the allocation of large amounts for investment that will contribute to solve the crisis of unemployment and increase economic growth by 8-10%, so as to ensure the completion of service projects in all governorates.
He said the remaining funds from the final account of last years amounted to eight billion dollars, and that the government would provide final budget to the Parliament during the first quarter of this year.
