Budget delays prevent the use of abundant oil in investment projects

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[size=52]Budget delays prevent the use of abundant oil in investment projects[/size]

[size=45]Baghdad/ Firas Adnan[/size]
[size=45]Economists suggested that the price of oil during the current year would remain above $100 a barrel, pointing out that the lack of approval of the budget prevents the financial abundance achieved from Iraqi exports in investment, warning against allocating it to spending on operational units and wasting an opportunity that may not be realized in the near future.[/size]
[size=45]Economist Furat Al-Moussawi said, “Most of the readings of the International Energy Agency confirm the continued rise in oil prices, especially after the recent changes resulting from the war in Ukraine and the sanctions that resulted from it, and the Iranian nuclear agreement, and the suspension of oil supplies in Libya, Kazakhstan and Azerbaijan, and this leads to an increase in demand. “. Al-Moussawi added, "The price of a barrel will stabilize above $100, after the United States decided to use a third of its strategic reserves by pumping one million barrels of oil per day." He pointed out, "Iraq is a single economic and rentier country that depends for its revenues on oil by more than 92%. It is facing a very big opportunity to benefit from this increase, as our revenues during the first three months of this year were about 28 billion dollars."[/size]
[size=45]Al-Moussawi explained, "The oil revenues for the same months during the previous year were $15 billion, and thus the increase came by about $13 billion, and it can be used in the field of oil investment to increase production."[/size]
[size=45]And he stated, "The ratios set by OPEC for oil production and export cannot be reached by Iraq, which requires intensifying efforts in investment in order to raise the country's oil efficiency."[/size]
[size=45]And Al-Moussawi said, "The increase is also an opportunity to pass the law of the disabled sovereign fund, and the current financial abundance should go to investment projects that reduce poverty and unemployment."[/size]
[size=45]And he added, "Dealing with the current rise in prices is the task of the executive and legislative authorities, by cooperating on enacting laws that provide economic revenues."[/size]
[size=45]Al-Moussawi warned against "the continuation of previous policies represented in taking these revenues and spending them on operational resources, because we will be facing a waste of money and a waste of an opportunity that may not be repeated in the future."[/size]
[size=45]He believed, "One of the criticisms currently directed at the government and parliament is the failure to legislate the budget law and resort to alternative legislation, at a time when we need a legal organization that deals with this increase in order to use it properly."[/size]
[size=45]Al-Moussawi added, "The waste of abundance that may reach very large sums during the next six months by spending on operational resources, this means that we have not addressed the unemployment crisis and others."[/size]
[size=45]In addition, the other economist, Nabil Al-Ali, stated that "the oil revenues go to the accounts of the Ministry of Finance, which is managed by the Central Bank of Iraq."[/size]
[size=45]Al-Ali added, "The disbursement of these revenues is linked to the existence of bonds represented in the budget law, which allows the Iraqi government to conduct spending according to legal doors."[/size]
[size=45]He pointed out that "estimates and economists are in agreement about oil prices that they will not decrease, and there are those who see that they will witness a rise to reach $180," but he agrees with Al-Moussawi that "prices will continue to go beyond $100 to reach $120 in most cases." .[/size]
[size=45]Al-Ali stressed that “the prices that are set in the budget law are speculative and precautionary, and the differences in these prices will be through which the deficit will be paid.”[/size]
[size=45]Last month, Iraqi oil revenues reached their highest level since 1972, recording $11.07 billion, according to preliminary figures from the Oil Ministry.[/size]
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