BAGHDAD: Increased oil revenue will allow Iraq to add US$5 billion to its 2008 budget, money earmarked for investment in infrastructure and services, a government spokesman said Monday.

Ali al-Dabbagh said in a statement the additional funds will be included in a complementary budget to be issued by the end of June. The money will be used for "important" and "strategic" investment, he said.

The funds will be tacked onto US$15 billion that was already planned for economic and infrastructure development in Iraq's budget, which stands at US$48.4 billion, not including the latest addition of US$5 billion.

Iraq spends nearly one-fifth of its budget — US$9 billion — on security.

Officials have said that security and economic revitalization are the focus points of Iraq's spending in 2008.

Security, it has been noted, must come before any hope for an economic upturn. Several reconstruction projects in the country have been halted or delayed because of deteriorating security situations.

Iraq's oil exports have increased of late since declining after the U.S.-led invasion in 2003. An average of 1.54 million barrels were sent each day through the main oil hub Basra in February, according to the Oil Ministry.

Iraq's average production for February was 2.4 million barrels per day. Exports averaged 1.93 million barrels per day during that month.

Despite a week of fighting between government troops and militants in Basra, officials have said the oil industry has been little affected.

Iraq, like all oil-producing nations, have seen windfalls as oil prices have climbed above US$100 a barrel.