Rising oil prices will cover the 2021 budget deficit, MP says

Shafaq News/ A member of the Parliamentary Finance Committee said on Saturday that the fiscal deficit in the general budget for the current year is estimated at 32 trillion dinars, confirming that the rise in oil prices will enable the government to cover the deficit.

Committee member, MP Naji al-Saeedi, told Shafaq News Agency, "The total expenditures in the General Budget for 2021 amounted to 129 trillion dinars, but the fiscal deficit in the law is estimated at 32 trillion."

Al-Saeedi added, "The price of one barrel of oil in the General Budget Law for the year 2021 was estimated at 45 dollars. Therefore, the rise in oil prices should cover the financial deficit and provide the Ministry of Finance with the petrodollar project allocations and cover other financial obligations."

Iraq relies on oil sales revenues to finance 95 percent of all state expenditures.

The country has been experiencing a stifling economic crisis since the beginning of 2020 due to the decline in crude oil prices in global markets due to the COVID-19 pandemic.