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.