Member of Parliament Mohammed Al Shammari found out two predominant motives at the back of the postpone in submitting the finances schedules from the authorities to parliament, even as caution that the Ministry of Finance is dealing with “awesome embarrassment” amid a stifling monetary crisis.
Al-Shammari informed dinaropinions.com, “The authorities faces two principal challenges: the first is the decline in oil fees, and the second is the shortage of cash liquidity, which makes it hard to finance projects and secure their dues while the price range schedules are authorised.”
He added, “authorities spending within the past changed into no longer well notion out, especially while oil costs have been high and it’d have been viable to save a part of sales for such instances. but, the government spent flexibly and generously.”
Al-Shammari mentioned that “the authorities is now in a difficult position, specifically because the 2025 budget became legislatively approved as a part of the three-yr finances, without taking marketplace variables under consideration, resulting in a economic deficit estimated at 60 billion dinars at some stage in the preparation phase.”
He talked about that “sending the schedules now approach a right away commitment to offer budget, something the Ministry of Finance is presently unable to acquire given the scarcity of revenues.” He added that “the residence of Representatives is not hesitant to pass the schedules due to the fact they had been by no means obtained from the authorities inside the first place.”
Al-Shammari concluded his feedback through putting forward that “borrowing has grow to be the only option for dealing with tasks, which locations the government and the Ministry of Finance in an embarrassing position earlier than the public and Parliament.”
Iraq relies on oil exports for its price range. years in the past, Parliament approved the 3-yr budget for 2023, 2024, and 2025, based totally on oil exports at $70 consistent with barrel. meanwhile, oil prices have fallen by means of more than 7% in spot and futures buying and selling in latest days, following US President Donald Trump’s assertion that he could improve price lists on 200 international locations, which includes Iraq.
the brand new US formulation units US tariffs on any us of a’s imports on the equal of the usa exchange deficit with that country divided by means of its imports from that us of a, or 10%, whichever is better, inflicting an earthquake that shook global economic markets.
In light of the hastily evolving scenario, Goldman Sachs expects oil expenses to say no all through the remainder of this year and into 2026, driven through rising recession risks and multiplied components from the OPEC+ alliance.
The financial institution expects Brent crude to common round $sixty three in keeping with barrel, while West Texas Intermediate crude will common around $fifty nine in line with barrel for the rest of 2025, earlier than declining to $fifty eight and $55 per barrel, respectively, in 2026.
