**GAO-08-153**                      Published: Jan 15, 2008. Publicly Released: Jan 15, 2008.                  

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## Highlights

The President's New Way Forward in Iraq identified Iraq's inability to spend its resources to rebuild infrastructure and deliver essential services as a critical economic challenge to Iraq's self-reliance. Further, Iraq's ability to spend its $10.1 billion capital projects budget in 2007 was one of the 18 benchmarks used to assess U.S. progress in stabilizing and rebuilding Iraq. This report (1) examines data the U.S. embassy used to determine the extent to which the government of Iraq spent its 2007 capital projects budget, (2) identifies factors affecting the Iraqi government's ability to spend these funds, and (3) describes U.S. government efforts to assist the Iraqi government in spending its capital projects funds. For this effort, GAO reviewed Iraqi government budget data and information on provincial spending collected by the U.S. Provincial Reconstruction Teams. GAO also interviewed officials from the departments of the Treasury, Defense, State, and other agencies and organizations.

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## Topics

International Affairs

Budget administrationBudget allowancesBudgetingBudgetsData integrityEconomic analysisEconomic growthFederal aid to foreign countriesFinancial managementForeign aid programsForeign governmentsInternational relationsIraq War and reconstructionProcurementProcurement practicesProgram evaluationReporting requirementsProgram implementation