Volume 1 - Iraq Watch

Iraq’s National Budget 1991-2002As illustrated in Figure 2, from 1991 to 1995, Iraqirevenues decreased by an average of 34.3 percent.From 1996 to 2001 revenues increased by an averageof 42.3 percent. The reason for the 143.7-percentincrease in revenues in 1996 is unclear because significant oil revenues from the UN Oil-for-Food Program(OFF) would not have been realized until early1997. Some of this increase, however, is probablya result of revenues rising from such a low base. In1997, there was a 66.8-percent increase in revenuesover 1996—a large increase that would be consistentwith an increase in revenues from OFF. Expendituresalso decreased from 1991 to 1995, but by an averageof 28.2 percent. From 1995 to 2001, expendituresincreased by an average of 16.8 percent—highlightedby a 49.5-percent increase in 2001. At the same time,over the 10 years since 1991, the government budgetdefi cit decreased from $1.6 billion to $410 million(see Annex C: Iraq’s Budgetary Process).Regime Financeand ProcurementFigure 2. The Iraqi state general government budget,1991-2002.15