A lawsuit was filed against the Ministry of Finance for not disbursing petrodollar allocations

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[size=52]A lawsuit was filed against the Ministry of Finance for not disbursing petrodollar allocations[/size]

[size=45]Representative Mustafa Sanad filed a lawsuit against the Iraqi Ministry of Finance for not disbursing petrodollar allocations, while the Federal Court set the date for the first pleading. Sanad said that the court “set April 3, 2024, as the date for the first pleading for the lawsuit it filed against the Ministry of Finance.”[/size]
[size=45]The representative explained the reason for the lawsuit that it was due to “the Ministry’s failure to fund Basra Governorate and the oil provinces with the 30% surplus that was achieved due to the rise in oil prices above $70 per barrel.”[/size]
[size=45]He noted that allocation is “a legal provision that was included in the tripartite budget and is binding for implementation,” he said. He continued: “The government refrained from funding the provinces according to their legal and constitutional entitlement, which achieves part of justice, and was busy beautifying itself and financing the region outside of the entitlement,” he claimed.[/size]
[size=45]The official Iraqi Gazette published instructions to “facilitate the implementation of the budget law” on (August 7, 2023), bringing the law into effect, without the 5% petrodollar amounts being disbursed to any oil and gas producing governorate so far. The estimated revenues from exporting crude oil are calculated on the basis of an average price of $70 per barrel, and an export rate of 3 million and 500 thousand barrels, including 400 thousand barrels per day for the quantities of crude oil produced in the Kurdistan region, based on an exchange rate of 1,300 dinars per dollar. The general budget stipulates the allocation of “(5%) of the revenues of crude oil (at the price specified in the general budget) produced in the region and the producing governorates, and (5%) of the revenues of crude oil refined in the refineries of the region and the governorates, and (5%) of the revenues of gas.” The natural product produced in the region and the producing governorates, at the equivalent price of a barrel of oil based on the price specified in the general budget, provided that the region and the producing governorate have the choice of choosing one of the revenues produced above, and that an amount of (2,000,000,000) dinars is allocated as projects to the region and the producing governorates.” “The region and the governorates that are not organized into a region, after obtaining the approval of the Prime Minister, have the right to dispose of and use no more than (50%) of the petrodollar allocations in each governorate,” according to the instructions to facilitate the implementation of the general budget law.[/size]
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