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Cablegate: Muthanna: Pic Province with Solid Budget Execution Record

VZCZCXRO1269
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #1827 1691258
ZNR UUUUU ZZH
P 171258Z JUN 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 7839
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS BAGHDAD 001827

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON PGOV IZ
SUBJECT: MUTHANNA: PIC PROVINCE WITH SOLID BUDGET EXECUTION RECORD

1. (U) This is a PRT Muthanna reporting cable.

2. (SBU) Summary: Muthanna has had a solid budget execution record
over the past two years and is eligible for a budget supplement in
2008. With elections approaching, the Provincial Council plans to
allocate 66% of both its original and supplemental budgets to
programs that will directly impact the voting public - no surprise
for a budding democracy in an election year. End Summary.

3. (U) Muthanna became the first of Iraq's 18 provinces to revert
to Provincial Iraqi Control. In September 2007, it was among the
first group of provinces to complete a Provincial Development
Strategy. (Once again, Muthanna is among the leaders in committing
its budget.) This year's budget figures tell a relatively
encouraging story.

4. (U) At the end of April 2008, Muthanna had already committed 39%
of its initial budget allocation of $83.4 million. On the heels of
95 percent and 89 percent of funds committed for 2006 and 2007
respectively, Muthanna is well positioned for a third straight year
of budget success.

5. (U) In order to request a capital budget supplemental, the
Ministry of Finance requires a provincial government to commit 25
percent of its FY2008 (capital) budget by June 30, 2008. Muthanna
has committed 39 percent and plans to request a supplemental of
$58M, 70 percent of its original allocation. According to contacts
in the provincial budget office, if approved, two-thirds of the
additional capital budget will go to sectors that directly touch the
voters: utilities, health, education, and municipalities. These
figures parallel the original 2008 budget allocation.

6. (U) The chart below provides a breakdown of the original and
supplemental budget figures (in US dollars).

Sector Original 2008 Budget Supplemental Budget (percent
incr.)
------ -------------------- ----------------
Utilities $22,908,333 $15,740,000 (+69)
Education $14,512,500 $8,622,500 (+59)
Municipalities $12,500,000 $11,208,333 (+90)
Transportation $10,737,500 $6,796,667 (+63)
Health $5,833,333 $3,333,333 (+57)
Communications $3,916,667 $2,483,333 (+63)
Administration $3,833,333 $4,494,167 (+117)
Criminal Justice $3,666,667 $3,945,833 (+108)
Agriculture $3,250,000 $875,000 (+27)
Youth and Sports $1,191,667 $475,000 (+40)
Other $1,050,000 $891,667 (+85)

Total: $83,400,000 $58,865,833 (+70)

7. (SBU) Comment: The Provincial Council has allocated 66 percent
of both its original and supplemental budgets to sectors that
directly touch the voting public - no surprise for a budding
democracy in an election year. End Comment.

© Scoop Media

 
 
 
 
 
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