"However, it is expected that this amount would double by the end of the year. "We all agreed that the draft budget would be returned to the ministerial council on Thursday and the council would be given a 48-hour deadline to make necessary amendments and resubmit to Parliament," said MP Faraj" ...
Sunday, 06 February 2011
Council given 48 hours to amend draft budget
Erbil and Baghdad agree to overcome budget differences
2011 draft budget to be sent back to government for revision; Kurds' comments to be taken into account
After the first draft of the Iraqi national budget for the year 2011 was drafted by the Ministry of Finance, submitted to the ministerial council, approved and submitted to the Council of Representatives, Kurdish representatives in Parliament raised their concerns and discontent with some of its articles. They claimed that there are some critical points in the draft that are not in the favor of the Kurdistan Region, and requested that it would need to be sent back to the Council of Ministers to be amended and sent back to Parliament. Otherwise, they argued, they are not ready to vote for it and it would not pass.
One of the major issues in the first draft was the requirement for the Kurdistan Regional Government to export 150,000 barrels of crude oil per day during the year in order for the region to get its 17% share in the national budget. This condition was set while disagreements between Erbil and Baghdad over KRG's oil exports were still to be resolved.
Previously, the new Iraqi Minister of Oil, Abdul Kareem Liaibi, stated in his early days in office that his ministry recognized the oil deals KRG signed with international companies and that the KRG will resume its oil exports in 2011, without mentioning any agreements between his government and the regional government over the oil companies' compensation.
This issue led to a round of negotiations between the regional and central government authorities for the purpose of finding a solution to the issues. The talks started with the visit of a high-ranking KRG delegation to Baghdad headed by Prime Minister Dr. Barham Salih, where they met central government officials and discussed the issues. During the meeting of PM Salih with his Iraqi counterpart, Nouri al Maliki, in Baghdad, an agreement was reached to resume KRG oil exports.
It was decided that oil exports from Taq Taq and Tawke oil fields in Kurdistan would resume as of February 1, after more than one and a half years of suspension. Companies have already done the preparations for the resumption; however, the deadline has passed and still oil exports have failed to get underway. But PM Salih said on Wednesday that exports would resume "soon." He also added that he was "confident" that the agreement between the two sides would be implemented.
The meeting was attended by Iraq's Deputy Prime Minister for Energy Affairs, Dr Hussein al-Shahristani, and Oil Minister Abdul Kareem Liaibi; on the KRG side, the Minister for Natural Resources, Dr Ashti Hawrami, Higher Education Minister Dr. Dlawer Ala--aldeen, and Deputy Finance Minister Rashid Tahir attended.
In addition to deciding to resume Kurdistan's oil exports, Prime Minister Salih and Prime Minister Maliki agreed that the Kurdistan Region will keep a share of its crude oil to supply its local refineries and power plants.
Regarding the discrepancies in the KRG's share calculations in the draft budget, both parties agreed that the regional and central government Finance ministries would review it, correct the mistakes, resolve pending issues and resubmit it for approval.
During a joint press conference of both Prime Ministers after their meeting late January, PM Salih said that they have agreed to find a resolution for all outstanding issues based on the Iraqi Constitution and the interests of the entire country and its population. "Kurdistan Region and KRG are part of Iraq and part of its constitutional system," said PM Salih during the press conference. "The KRG's success is a success for all of Iraq."
Following these developments, Parliament's Finance Committee organized a session to discuss the draft budget on Monday, January 31, where Finance Minister Raf'i Isawi was present and listened to the comments of the Kurdish bloc and other blocks about the first draft. It was finally decided that the draft should be returned to the Council of Ministers with Parliament's comments and recommendations for amendments.
Burhan Mohammed Faraj, Member of Parliament on the Kurdish Alliance bloc, told a local Kurdish news agency that Minister Isawi stated that they have signed a political agreement with the KRG about the budget draft, especially about Article 1, and they have agreed to change the KRG's oil export volume from 150,000 to 100,000 barrels per day.
However, it is expected that this amount would double by the end of the year. "We all agreed that the draft budget would be returned to the ministerial council on Thursday and the council would be given a 48-hour deadline to make necessary amendments and resubmit to Parliament," said MP Faraj.
http://www.kurdishglobe.net/display-article.html?id=E9D6065E766AF45D59B31C3857907675
2011 draft budget to be sent back to government for revision; Kurds' comments to be taken into account
After the first draft of the Iraqi national budget for the year 2011 was drafted by the Ministry of Finance, submitted to the ministerial council, approved and submitted to the Council of Representatives, Kurdish representatives in Parliament raised their concerns and discontent with some of its articles. They claimed that there are some critical points in the draft that are not in the favor of the Kurdistan Region, and requested that it would need to be sent back to the Council of Ministers to be amended and sent back to Parliament. Otherwise, they argued, they are not ready to vote for it and it would not pass.
One of the major issues in the first draft was the requirement for the Kurdistan Regional Government to export 150,000 barrels of crude oil per day during the year in order for the region to get its 17% share in the national budget. This condition was set while disagreements between Erbil and Baghdad over KRG's oil exports were still to be resolved.
Previously, the new Iraqi Minister of Oil, Abdul Kareem Liaibi, stated in his early days in office that his ministry recognized the oil deals KRG signed with international companies and that the KRG will resume its oil exports in 2011, without mentioning any agreements between his government and the regional government over the oil companies' compensation.
This issue led to a round of negotiations between the regional and central government authorities for the purpose of finding a solution to the issues. The talks started with the visit of a high-ranking KRG delegation to Baghdad headed by Prime Minister Dr. Barham Salih, where they met central government officials and discussed the issues. During the meeting of PM Salih with his Iraqi counterpart, Nouri al Maliki, in Baghdad, an agreement was reached to resume KRG oil exports.
It was decided that oil exports from Taq Taq and Tawke oil fields in Kurdistan would resume as of February 1, after more than one and a half years of suspension. Companies have already done the preparations for the resumption; however, the deadline has passed and still oil exports have failed to get underway. But PM Salih said on Wednesday that exports would resume "soon." He also added that he was "confident" that the agreement between the two sides would be implemented.
The meeting was attended by Iraq's Deputy Prime Minister for Energy Affairs, Dr Hussein al-Shahristani, and Oil Minister Abdul Kareem Liaibi; on the KRG side, the Minister for Natural Resources, Dr Ashti Hawrami, Higher Education Minister Dr. Dlawer Ala--aldeen, and Deputy Finance Minister Rashid Tahir attended.
In addition to deciding to resume Kurdistan's oil exports, Prime Minister Salih and Prime Minister Maliki agreed that the Kurdistan Region will keep a share of its crude oil to supply its local refineries and power plants.
Regarding the discrepancies in the KRG's share calculations in the draft budget, both parties agreed that the regional and central government Finance ministries would review it, correct the mistakes, resolve pending issues and resubmit it for approval.
During a joint press conference of both Prime Ministers after their meeting late January, PM Salih said that they have agreed to find a resolution for all outstanding issues based on the Iraqi Constitution and the interests of the entire country and its population. "Kurdistan Region and KRG are part of Iraq and part of its constitutional system," said PM Salih during the press conference. "The KRG's success is a success for all of Iraq."
Following these developments, Parliament's Finance Committee organized a session to discuss the draft budget on Monday, January 31, where Finance Minister Raf'i Isawi was present and listened to the comments of the Kurdish bloc and other blocks about the first draft. It was finally decided that the draft should be returned to the Council of Ministers with Parliament's comments and recommendations for amendments.
Burhan Mohammed Faraj, Member of Parliament on the Kurdish Alliance bloc, told a local Kurdish news agency that Minister Isawi stated that they have signed a political agreement with the KRG about the budget draft, especially about Article 1, and they have agreed to change the KRG's oil export volume from 150,000 to 100,000 barrels per day.
However, it is expected that this amount would double by the end of the year. "We all agreed that the draft budget would be returned to the ministerial council on Thursday and the council would be given a 48-hour deadline to make necessary amendments and resubmit to Parliament," said MP Faraj.
http://www.kurdishglobe.net/display-article.html?id=E9D6065E766AF45D59B31C3857907675
