Iraq News - Local News - Baghdadpost

Iraqi government faces budget deficit due to setting oil prices at $56 pb

Setting the oil price at $56 per barrel (pb) at the 2019 budget has damaged it, forcing the government to resort to foreign loans, Parliamentary Finance Committee member Ahmed Rashid said on Sunday.

Iraq now sells the barrel for $43, said Rashid, which caused an $18-billion deficit in the 2019 FY budget.

This shortage in expenses could not be covered but through loans, therefore, Iraq was forced to take foreign loans to meet its own needs, Rashid said.

Iraqi lawmaker Laila Mahdi al-Tamimi stated earlier this week that the state budget has hit a serious deficit, as the 2019 FY budget deficit jumped to 113 percent. 

Tamimi also 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."
Last Modified: Sunday، 30 December 2018 08:36 PM