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Parliamentary Finance: High oil prices will eliminate the need for loans

The Parliamentary Finance Committee clarified, on Thursday, April 29, 2021, that high oil prices will cover the operating budget deficit without going to external or internal loans.

Committee member Abdul Hadi Al-Saadawi said in a press statement that “in the event that oil exports increase and oil revenues are achieved as a result of high oil prices at current prices that approached seventy dollars or exceeded seventy with the passage of time, this will eliminate the need for internal or external loans in the budget.” He pointed out that “the high spending of the operational budget and the increase in appointments during the previous years had a negative impact on the budget.”

And that “any increase in oil prices will go to cover the budget and the deficit only, and there is no supplementary budget or adding functional grades.”

Oil prices continued their gains, Thursday, after a 1% rise in the previous session, as positive expectations about a recovery in demand this summer overshadowed concerns about the impact of the increase in the number of epidemics in India, Japan and Brazil.