It pushes towards more debts.. Specialists warn of the repercussions of low oil prices on the budget[You must be registered and logged in to see this link.] |Today, 11:0[You must be registered and logged in to see this image.]
Baghdad today - Baghdad
Oil experts warned today, Thursday, of the repercussions of the large increase in the deficit rate in the draft federal budget law, in light of the continued decline in global oil prices.
The expert in oil affairs, Hamza Al-Jawahiri, warned against the large increase in the deficit rate in the draft fiscal budget law .
Al-Jawahiri told (Baghdad Today) that "the continued decline in oil prices in the global market will have a significant impact on increasing the deficit percentage in the budget law, and this matter has serious economic consequences, as the current deficit is very large, and it represents nearly 20% of the budget." budget . "
He explained that "the budget law is currently only about paying the salaries of employees and retirees, and with the large financial deficit and fears of an increase in this deficit."
He pointed out that "all indications confirm that oil will continue to decline during the coming period," noting that "this will push Iraq toward further increase in internal and external debt in order to bridge parts of this deficit . "
It is noteworthy that the Parliamentary Finance Committee continues its meetings with ministries and government institutions regarding the financial budget for the year 2023, whose deficit amounts to 63 trillion and 275 billion dinars .
The committee revealed, earlier, a government move to reduce the deficit rate by 18 trillion dinars .
While the economist, Nabil Al-Marsoumi, warned of the repercussions of the drop in global oil prices on the budget.
Al-Marsoumi told (Baghdad Today) that "the drop in the price of Brent crude to $72 per barrel confuses the financial accounts in Iraq because the selling price of Iraqi oil has become slightly more than the estimated price in the budget set at $70."