Economic researcher Diaa Abdul Karim said the recent ups and downs in oil prices mean Iraq’s next government will need to rethink its budget plans.
Speaking to dinaropinions.com, he explained that oil prices have been moving between $60 and $70 per barrel, sometimes a little higher. He said this shows clear instability, especially with ongoing regional and international tensions affecting the market.
According to Abdul Karim, this kind of price fluctuation makes it necessary for the next government to carefully recalculate the budget. He said officials should first determine the oil price needed to cover operating expenses, then add what is required for investment spending. From there, they can decide on a realistic estimated oil price to base the budget on.
He also criticized the government of Mohammed Shia’ al-Sudani for approving a three-year budget. He said the current situation does not support long-term budgeting, especially with unstable oil prices and ongoing regional tensions.
In his view, Iraq would be better off preparing a separate budget for each year, allowing more flexibility to deal with changing economic conditions.
