Surplus from oil sales goes to cover the fiscal deficit, MP says

Shafaq News/ The Finance Committee of the Iraqi Parliament clarified the difference between the oil barrel's price in the budget and the market price.

 Committee Rapporteur Ahmed Al-Saffar told Shafaq News Agency, "The difference between the price of a barrel in the budget and the market price is used to finance the deficit," noting, "If the barrel price surpasses 76 U.S. Dollars, the deficit will be covered for the next five months, and what exceeds can be used to cover government needs."

 In early February, the Iraqi parliament approved the 2021 financial budget law, with a total expenditure of 129 trillion dinars (about 88 billion dollars), and a deficit of 28 trillion (about 19 billion dollars).

 The estimated revenues from the export of crude oil were also calculated based on an average price of $45 per barrel, and an export rate of 3.250 million barrels per day.

 Global oil prices have risen in the past few months, exceeding the threshold of $70 per barrel.