Baghdad Adviser to the Prime Minister for Financial Affairs, Mudhar Muhammad Salih, confirmed that the rise in oil prices is an additional revenue to cover the deficit and compensate for internal and external borrowing.
He told the National Iraqi News Agency (NINA) that the differences in the prices of Iraqi sourced oil, whose prices exceed the price specified in the federal general budget of 45 dollars per barrel, is considered an additional cash income.
Salih added that this additional revenue flows into the balances of the federal general budget to fill the deficit gap in the annual budget, estimated at about 29 trillion dinars.
He continued that this additional income is considered a compensation for the planned borrowing in whole or in part and a substitute for any debts, whether internal or external.
Salih pointed out that indicators up to the moment show that these differences will cover, if oil prices continue with this improvement, about 80% of the deficit gap.
The price of Basra oil recorded a noticeable increase in the recent period, exceeding $70 per barrel.
Source: National Iraqi News Agency