On one condition.. Al-Kazemi’s government expects to cover the budget deficit by 100%

On one condition.. Al-Kazemi’s government expects to cover the budget deficit by 100%

2021-10-27 08:28

On one condition.. Al-Kazemis government expects to cover the budget deficit by 100 percentShafaq News/ Mazhar Muhammad Salih, the financial and economic advisor to the caretaker prime minister, Mustafa Al-Kazemi, expected, on Wednesday, to cover the entire deficit in the federal financial budget for the current year after the rise in oil prices.

Saleh told Shafaq News Agency, “The rise in oil prices will contribute to covering the current budget deficit of 29 trillion dinars at a rate of 100%, provided that the planned non-oil revenues achieve a ratio of approximately 90-100% and not 30% as it is expected, to widen the fiscal deficit gap. in the general budget.

And he indicated that “there are two other things that still represent the concern of the difficult Iraqi economic equation, which is the modest annual economic growth expected to (positive 1%), which is less than the population growth rate of 2.6%.”

Saleh explained that this “indicates the persistence of high levels of unemployment among young people, reaching about 23%, in addition to the increasing levels of poverty that still take from the prosperity of life for about 40% of the country’s population.”

He added, “This is accompanied by a creeping annual inflation that increased from 1% at the beginning of this year to about 9.5-10% annually.”

Iraq is the second largest oil producer in OPEC after Saudi Arabia, with a production of about 4.5 million barrels per day, of which the country exports about 3.5 million barrels per day.

The country relies on oil sales revenues to cover up to 95 percent of state expenditures, which makes the country’s rentier economy highly affected by the rise or fall of crude prices in global markets.