Former member of the Parliamentary Finance Committee, Mu’in al-Kadhim, said on Sunday that Iraq needs about 150 trillion dinars to cover its expenses this year, but expected revenues will fall short, leaving a deficit of around 30 trillion dinars.
Speaking to dinaropinions.com, al-Kadhim explained that the government will likely rely on a 1/12 spending system, meaning monthly spending based on last year’s budget. He said oil revenues are expected to reach about $75 billion, assuming oil prices average $60 per barrel this year.
According to his calculations, that oil income would equal around 100 trillion Iraqi dinars, using an exchange rate of 1,320 dinars per dollar. On top of that, non-oil revenues are expected to bring in about 20 trillion dinars.
Al-Kadhim pointed out that even with these revenues combined, Iraq would still be short by roughly 30 trillion dinars, since total spending needs are estimated at 150 trillion dinars for the year.
