Due to the drop in oil prices, the Iraqi government is considering canceling the 2025 budget.
Due to the drop in oil prices, the Iraqi government is considering canceling the 2025 budget.
2025-04-30 03:27
Shafaq News/ An Iraqi cabinet source said on Wednesday that the government is considering canceling the 2025 budget due to the decline in oil prices, which has increased the country’s fiscal deficit .
The source told Shafaq News Agency, “The Council of Ministers did not formally discuss the budget schedules in its previous sessions, and Finance Minister Taif Sami informed the Council of Ministers that there is a large deficit in the budget schedules .”
He added, “Under current conditions, there will be no budget this year due to the decline in oil prices, which has directly impacted financial revenues and increased the deficit in the 2025 budget .”
The source explained that “if the budget is cancelled, Finance Minister Taif Sami may issue a decision to release bonuses and promotions for state employees that were halted and delayed due to the budget.”
On April 16, the Parliamentary Finance Committee warned against adjusting the price of a barrel of oil in the Iraqi federal general budget due to the decline in global oil prices .
Committee member Jamal Kocher told Shafaq News Agency, “The price of a barrel of oil was set in the general budget law at $70 per barrel. At the time, the price of a barrel of oil was more than $70. It is not yet known whether the government has adjusted the price of a barrel of oil in the budget or not .”
Kocher pointed out that “the Iraqi state’s operating budget is only 90 trillion dinars, and if the price of a barrel of oil falls below $60 and this is not addressed, this will lead the country to enter a financial crisis, and the government will spend the financial revenue from oil on employee salaries only . ”
shafaq.com
