Iraq’s oil income no longer covers the government’s monthly expenses, the economic observatory ECO Iraq warned on Saturday, forecasting that Brent crude could drop to about $60 per barrel before the end of the year.
In a statement, the observatory explained that current spending amounts to about 11 trillion dinars ($7.77B) a month—out of a total of 27 trillion dinars ($19.06B) in overall government allocations—most of which go to salaries, pensions, and subsidies. Current oil sales at $65–67 per barrel generate less than 10 trillion dinars (about $7.06B), while non-oil revenues remain below 2 trillion dinars (about $1.41B) — a shortfall widening the fiscal gap.
