The Iraqi Finance Ministry has announced that the Iraqi budget 2020 has gained advanced stages in its discussion. It was also said that the ministry did not adopt a fixed price of a barrel of oil with a daily export of 3 million and 800 thousand barrels, including 250 thousand barrels share from the Kurdistan region. The Undersecretary of the Ministry Dr. Maher Hammad Johan issued a press statement. The statement has indicated that the budget for the next year 2020 will be unconventional. It depends mainly on the provision of services and the needs of citizens in the entire country. The statement stressed that it is under study and will continue between 4 to 5 stages to reach its basic idea. But, it depends on how to provide the necessary financing to meet the needs of Iraqi citizens, compensation, and salaries.
The statement added that the fiscal budget law 2020 hasn’t yet finalized a fixed price for Iraqi oil exports. But, there are proposals submitted to adopt a price ranging from 50 to 56 dollars per barrel. It includes oil allocated from the Kurdistan region of Iraq, amounting to 250 thousand barrels per day. Moreover, the House of Representatives may put any other wording that modifies the direction of the share from the Kurdistan region’s produced oil.
Johan pointed out the part of it was addressed through loans in the original budget on the mechanism of closing the deficit in the current budget 2019. He said the other part was through cash already available in the Finance Ministry. However, while part of the deficit will remain until the end of this year. Johan pointed out that the fiscal deficit for next year’s budget is not clear yet about the calculation of reducing entire expenditures. He added that state banks in the country are one of the major tools for a government to solve any financial problem, whether to pay the deficit or to stimulate the economic movement in the country.