COR'S ECONOMIC COMMITTEE REQUESTS BUDGET EXECUTION

C O N F I D E N T I A L BAGHDAD 001655

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/20/2017
TAGS: ECON EFIN IZ
SUBJECT: COR'S ECONOMIC COMMITTEE REQUESTS BUDGET EXECUTION
REPORTS

REF: BAGHDAD 1576

Classified By: Economic Minister-Counselor Daniel Weygandt for reasons
1.4 (b) and (d).


1. (C) According to Council of Representatives and Economic
Committee Member Amirah Al Baldawi, the Committee is
beginning an aggressive program of its own to pressure both
the national and provincial government to execute their
capital budgets promptly. The Economic Committee will ask
for progress reports on budget execution from ministries and
the provincial governments. In a May 17 meeting with
Econoff, Dr. Al Baldawi said the Economic Committee will
contact the economic committees of the provincial councils to
determine their ability to plan and execute capital budgets.
Dr. Al Baldawi considers this outreach a form of assistance,
and she plans on meeting soon with the chair of the Economic
Committee of the Baghdad Provincial Council. She said that
the CoR Economic Committee is also concerned that there may
not be sufficient coordination between ministerial and
provincial plans for capital projects within the provinces.
The Economic Committee will be questioning ministries on
whether this coordination is taking place.


2. (C) Dr. Al Baldawi believes it would be difficult for any
spending unit to expend 25% of its capital budget by the
mid-year review, which is necessary to avoid a possible
reallocation of funding as stipulated in the 2007 Budget Law
(reftel). She said it always seemed like an overly ambitious
goal because the budget was passed so late, which is why the
CoR lowered the threshold for review from 37.5% in the draft
law to 25% in the final law. Nonetheless, Dr. Al Baldawi
said, the budget stipulation is a good incentive for spending
units to execute the budget, and allows for greater
oversight. Dr. Al Baldawi does not expect the CoR to recess
for two months this summer, noting that the CoR made similar
decisions to truncate the last winter and summer recesses
because of urgent legislative responsibilities.


3. (C) Dr. Al Baldawi had questions about the Iraqi press
reports on the replacement of the Iraq Reconstruction
Management Office with the Iraq Transition Assistance Office.
"Does this mean that the U.S. is diminishing its support for
Iraq?" she asked. Econoff explained the shift in focus of
U.S. efforts from reconstruction to economic growth,
emphasizing that the U.S. wants to continue and even
accelerate its engagement to assist Iraq in developing its
economy. Dr. Al Baldawi agreed that Iraq did not need more
funds for reconstruction, but instead needs capacity
development and technical assistance.
CROCKER