The Parliamentary Finance Committee confirmed, on Saturday, that the fiscal deficit in the General Budget Law for the current year is estimated at 32 trillion dinars, confirming that high oil prices will enable the government to cover the deficit.
Committee member Naji Al-Saeedi said in a press interview, "The total expenditures in the General Budget Law for 2021 amounted to 129 trillion dinars, but the financial deficit in the law is estimated at 32 trillion."
He added, "The calculation of one barrel of oil in the General Budget Law for the year 2021 was proven at 45 dollars, and therefore the rise in oil prices will cover the expenses of the financial deficit, and provide the petrodollar project allocations and other obligations to the Ministry of Finance."
Iraq relies on oil sales revenues to finance 95 percent of state expenditures.
The country has been experiencing a stifling economic crisis since the beginning of 2020, due to the decline in crude oil prices on global markets due to the Corona pandemic.