Iraq raises 2024 budget by 15%, surprising parliamentarians

Shafaq News/ Iraq's government has raised the volume of its 2024 budget by 15%, to 228 trillion dinars ($155 billion)- to the surprise of the parliamentary finance committee, which said the decision was "unrealistic" and would worsen the deficit.

Committee member Moeen al-Kadhimi, told Shafaq News agency that the government had not explained the reasons for the raise, which came despite a lower-than-expected budget deficit in 2023.

"We, in the finance committee, were surprised that the government raised the total amount of the budget law from 199 trillion dinars to 228 trillion dinars in the 2024 budget," the lawmaker said. "This is a large raise, while the amount spent in 2023 was 142 trillion dinars."

He said the committee members had told the government that the budget should be "realistic, not just aspirational."

The increase in the budget will also increase the deficit, he said. "The budget is still being finalized by the cabinet and is expected to be sent to parliament next month."

The 2024 budget is based on an oil price of $70 per barrel, with oil exports expected to average 4.2 million barrels per day. The budget also includes a 10% increase in salaries for public sector employees. Iraq's economy is heavily dependent on oil exports, which account for more than 90% of government revenue. The country has been struggling to rebuild its economy after years of war and conflict.