A member of the Parliamentary Finance Committee, Ahmed Hama, confirmed today, Sunday, that international oil prices are currently unstable and cannot be relied upon in presenting the draft law on the country’s general federal budget for the year 2022.
Hama said, in a press statement, followed by the “National News Center”, that “the government has deliberately fixed the price of a barrel of oil in the 2022 budget bill, $50 for fear of a drop in prices in the coming days as a result of the lack of demand versus supply in global markets, as well as the continuation of the pandemic.” Corona".
He added that "the price set by the government will exceed the oil break-even price estimated by the International Monetary Fund for Iraq," noting that "the price of a barrel of oil in the draft budget is adjustable by raising or reducing the price."
And he indicated that "the difference in the price of a barrel of oil fixed in the budget and in global markets, will help the government bridge the budget deficit, as well as prevent it from heading towards internal and external borrowing and increasing credit directed to the private sector."
During the past months, the Ministry of Finance, headed by Minister Ali Allawi, held several sessions to develop “strategic” plans for the budgets for the years 2022-2023-2024.
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