Al-Kazemi’s advisor: The rise in oil will fill the deficit and cancel borrowing
54 minutes ago Iraq news
Yes Iraq: Baghdad
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed on Monday that the rise in oil prices will prompt the government not to borrow to fill the budget deficit.
Saleh said, "The rise in oil prices will fill the deficit in the budget, but this rise needs to be sustained and throughout the fiscal year."
He added that "the budget in which the price of a barrel is set at 45 dollars, and therefore what concerns us is calculating the average price of a barrel during one year," expecting that "the average price of a barrel during 12 months is 65 dollars a barrel or a little more."
He pointed out that "this price would fill in whole or part of the deficit in the budget instead of going to borrowing to fill this deficit," noting that the budget was built on a deficit of 27 trillion dinars during the current year.
It is noteworthy that oil prices rose to more than $80 a barrel after recording low prices of less than $30 with the spread of the Corona epidemic, which affected Iraq’s general budget, which depends by 93% on oil revenues.
Iraq’s general budget for 2021 set the oil price at $45, with exports amounting to 3.250 million barrels per day, and a deficit of 28 trillion dinars.