Seventy billion dollars and Iraq’s oil revenues this year.. Will it fill the fiscal deficit?
On Saturday, July 3, 2021, the Parliamentary Finance Committee issued a clarification on the rise in oil prices and the possibility of filling the budget deficit.
The head of the committee, Haitham al-Jubouri, stated that so far, according to the new oil prices, the financial deficit in the budget has not been filled, despite the fact that oil reached $75, but Iraqi oil is lower than international prices, with the exception of Basra Light oil, in addition to the cost of oil production.
He went on to say that a barrel of oil after its extraction is cleared of its price of 60 dollars after hitting it with a production of 2 million 880 thousand times 365 days and hitting it in the exchange rate, we find that it did not fill the deficit in the budget.
He pointed out that the budget is 130 trillion and at current prices we still have a real deficit in investment and operational expenditures of 30 trillion, stressing that we are surprised by the talk of some about the existence of financial abundance.
And he indicated that the abundance that is achieved goes to bridge the financial deficit in the budget, and therefore we still need to return the million barrels that were deducted from the quantities that Iraq is supposed to produce according to the OPEC agreement so that we can completely fill the real deficit to spend the budget, but in the current situation the deficit is still Existing.
Economist Manar Al-Obaidi expected that Iraq’s oil revenues would reach $70 billion this year.
Al-Obaidi told Al-Masala that the surplus achieved by oil revenues during the first six months of the year amounted to 9.8 trillion dinars, and the size of the surplus is expected to reach more than 26 trillion dinars.
And he went on: The total oil revenues for the first six months of the year amounted to 33.11 billion dollars, knowing that the oil revenues planned in the budget were 26.325 billion dollars.
He mentioned that despite the significant increase in oil prices, the monthly sales rate did not exceed the 2.9 million barrels per day barrier, despite the fact that the value of sales planned in the 2021 budget was 3.25 million barrels.
He continued: It is expected that the total oil revenues until the end of the year will reach 70 billion dollars, equivalent to 102 trillion Iraqi dinars.
He resumed saying: Despite the increase in non-oil revenues, the specter of the deficit still exists, as the budget planned non-oil revenues of 20 trillion dinars, of which no more than 2 trillion dinars were achieved as a result of the weakness of the procedures followed to maximize non-oil revenues.
He concluded his speech by saying that in the event that non-oil revenues of more than 10 trillion dinars are not achieved, it is expected that the total revenues by the end of the year will reach 112 trillion dinars.