Koger reports budget figures and warns of 65T Dinar deficit
Iraq has withheld a draft budget amounting to approximately 218 trillion dinars, with a financial deficit of 65 trillion dinars. This figure exceeds the allowable limit according to the Financial Management Law, which caps the deficit at no more than 3% of the Gross Domestic Product (GDP), estimated at around 260 trillion dinars. This deficit is considered concerning, as it could lead to increased burdens on debt and liquidity, especially if oil prices decline. The draft budget also includes disagreements over exchange rates, expenditure allocations, and project distribution among provinces and ministries. Additionally, it involves the stabilization of contracts and new appointments, with a heavy reliance on oil revenues (covering about 88-92%). Experts indicate that the government aims to keep the oil price per barrel between $60 and $70, although sources anticipate fluctuations in oil prices between $53 and $56. Furthermore, Kurdistan Region's resources exceed previous estimates based on recent census data, requiring political consensus to ensure the region's rights are secured in the budget.
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