Economist: The government will be forced to reduce budget expenditures in line with oil prices.
Economist: The government will be forced to reduce budget expenditures in line with oil prices.
6-1-2025
Information/Baghdad…
Economic researcher Diaa Abdul Karim believes the government will be forced to reduce federal budget expenditures for the coming years in line with the decline in oil prices.
Abdul Karim told Al-Maalouma, “Compensating for revenues resulting from the decline in oil prices requires searching for clear and affordable alternatives, most notably petroleum derivatives, as exporting them will guarantee Iraq additional income to offset the losses from the decline in oil prices.”
He added, “If oil prices fall below $70 per barrel, the government will be forced to reduce government spending and seek resources to cover employee salaries, even though these expenses are covered at an oil price of less than $50 per barrel.”
He expected that the budgets for the coming years would be different, as the government would be forced to reduce the investment budget to avoid any sudden drop in oil prices, following the current decline.
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