A deputy in the Iraqi parliament pointed out that the deficit in 2020 budget could reach 30 billion U.S dollars. It might cause an unprecedented crisis. The MP pointed out in a statement, “There are expectations that Iraq will be on a new date with a fiscal deficit during the next year 2020”. He added that there are a number of indicators and predictions showing that it will be more critical in at least past 16 years in light of the decline in resources and high costs of debt and war against terrorism. He said the work started early this year to discuss the measures of the Iraqi government. They also discussed what to do with a deficit expected to be catastrophic if oil prices fall below current levels or tensions in the Strait of Hormuz lead to fluctuation of oil exports through Basra. He pointed out that the Iraqi government and parliament bear the reason for this deficit.
He said that it is scheduled to start the financial and legal committees in the Iraqi parliament at the end of September. They will hold discussions on the new budget amid expectations of the deficit to reach 30 billion U.S dollars. It is noteworthy that the current year’s budget deficit has reached 23.3 billion U.S dollars. He also added that the government of Iraq didn’t get even 1 dollar of oil export revenues from the Kurdistan region, in spite of the agreement concluded with Erbil early this year. But, the Iraqi federal government paid a few billion U.S dollars to the region within its share of the state budget. The deputy added that Iraq is on a date with the repayment of loans to many countries and foreign banks during the past periods, as some press for the collection of funds. These countries include the United States, Iran, China, and France.