Washington D.C. – As the United States’ economy continues to falter, there is growing concern in the Democratic Congress over the billions of U.S. taxpayer dollars being spent monthly in Iraq on reconstruction and other efforts, while the Iraqi government continues to stockpile a budget surplus that is expected to reach $79 billion by the end of 2008.

Today at a House Budget Committee hearing on this issue, U.S. Representative Allyson Schwartz expressed her outrage over the incredible disparity between what the U.S. is spending in Iraq, while the Iraqi government continues to reap billions in oil revenues, which it is stockpiling. 

“I cannot begin to describe my frustration and outrage toward that fact that the Bush Administration is having American taxpayers spend $10 billion in Iraq, while the Iraqi government is using revenues it is gaining from sky high gas prices to build a massive billion dollar budget surplus,” said U.S. Rep. Schwartz.

“The Iraqi government must step up and take greater responsibility for its own security and its own reconstruction efforts. The United States simply cannot continue to sink billions in Iraq every month when we are facing an over $400 billion budget deficit and needing to meet critical priorities here at home,” added Schwartz.

Experts testifying today were Joseph Christoff, the Director of International Affairs and Trade at General Accountability Office; and Christopher Blanchard from Congressional Research Service; Dr. Lawrence Korb from the Center for American Progress, and Dr. Frederick Kagan from the American Enterprise Institute testified before the Budget Committee today

Key Facts on the Iraq Budget Surplus:

• While the United States is spending $10 billion a month in Iraq, Iraq has budget surpluses that may reach $79 billion by the end of 2008. 

• Iraq has a large and growing surplus not only because of increasing oil revenues, but also because it has failed to effectively carry out plan and maintain reconstruction projects.

• Iraq is not spending enough of its own money on reconstruction. While the United States has spent 70 percent of the $33 billion it allocated for Iraq’s key security, water, and electricity sectors, Iraq has spent only 14 percent of the $28 billion it allocated.

(Source: House Budget Committee)

Current U.S. Budget Deficit:

• According to projections from the Congressional Budget Office, the United States is facing an expected budget deficit to exceed $400 billion for the current fiscal year. This is the second largest deficit in American history.

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