On Wednesday, MP Dhurgham Al-Maliki pointed out the dangers of Iraq’s reliance on oil to fund the state budget.
“The Iraqi economy is still rentier, relying on oil to support 90 percent of its budget, noting that oil has witnessed significant fluctuations in its prices in the past few years, leading to severe financial crises that have effectively sounded the alarm bell,” Al-Maliki stated.
That’s what he added “the practically outright dependence on incomes from the offer of unrefined petroleum to back the Iraqi depository is joined by gambles, most outstandingly the likelihood that the shortfall could transform into a significant difficulty, particularly since any drop in costs will prompt an issue in giving the assets expected to pay compensations and different duty.”
“The changes in the world and the diversity of energy sources require seeking to build new steps for the economy in terms of relying on non-oil sources to finance the budget and compensate for any drop in oil sales prices,” he mentioned.
It is vital that Iraq depends vigorously on the offer of raw petroleum as a monetary income for its depository to spend on funding pay rates and government establishments.
