Iraq News - Local News - Baghdadpost

Iraq welcomes 2019 with 113% budget deficit

Economic Bassem Jamil Antoine asserted on Wednesday that “Iraq seeks to have professional economic budget consistent with the current phase issues.
Iraqi currency
With the problems accompanying the formation of Adil Abdul Mahdi’s government’s, the state budget has hit a serious deficit, as the 2019 FY budget deficit jumped to 113 percent, according to MP Laila Mahdi al-Tamimi.

The lawmaker criticized the government’s decision to set the oil price at $56 per barrel, as economic figures indicate a fall in prices, noting that "the government is justifying [the deficit] by borrowing from domestic and foreign banks."

Tamimi added that the federal government's ministries have become the origin of the problem of problem, not the solution to the budget deficit," noting that decreasing medical expenses by 53 percent by 2018 is putting the lives of poor people in danger.

The Parliament finished the first and second readings of the draft of the new budget earlier in December. The revenues of the 2019 budget is estimated at about 150.6 trillion Iraqi dinars according to the estimated revenues from the export of crude oil on the basis of the rate of $56 per barrel, and an export rate of 3,880,000 bpd.

The estimated expenditures amount at about 133.1 trillion dinars, while the total deficit planned estimated at 27.5 trillion dollars.