Saleh: The Financial Abundance Of Oil Will Contribute To Improving The Economic Situation

Saleh: The Financial Abundance Of Oil Will Contribute To Improving The Economic Situation

11/15/2021 | 2:52 PM

Saleh - The Financial Abundance Of Oil Will Contribute To Improving The Economic Situationinformation/special

Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed today, Monday, that the financial abundance achieved from the rise in oil prices will contribute to improving the economic situation in general, indicating that Iraq will not resort to borrowing if the rise in global oil prices continues.

Saleh said in a statement to the “Information” agency, that “Iraq’s economic recovery depends on the total spending ceilings in the budget, and if it is assumed that the spending ceiling in the 2022 budget is the same in 2021 and that the average price of a barrel of oil achieved throughout the year is not less than 75 dollars.” The oil revenues will alone cover the total expenditures in the budget.”

He added, “Wounding the upcoming budget with a hypothetical deficit does not mean that the government will resort to borrowing, provided that the public spending ceiling remains close to the ceiling of the 2021 budget, and the average annual oil barrel is not less than 71 dollars.”

Saleh pointed out, “There are expectations of financial abundance and the disappearance of the deficit in the 2022 budget in the event that oil prices continue to rise globally and some surplus is achieved in the availability of other revenues.”

He pointed out that “the budget stability fund must be available as a sovereign hedge fund from the exposure of financial sustainability to the risk of fluctuation or decline in the sustainability of financial revenues achieved from the rise in global oil prices.”

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