Parliamentary Finance: The state’s resources are inconsistent with its expenditures, and the difference in oil prices will be used for three things
Parliamentary Finance: The state’s resources are inconsistent with its expenditures, and the difference in oil prices will be used for three things
Thursday 3 June 2021 | 02:20
Member of the Parliamentary Finance Committee, Representative Jamal Kougar, confirmed today, Thursday, that the state’s resources are not in line with its expenditures, indicating that the increase in oil prices will be used in three matters .
Cougar said, “The state’s resources are not in line with its expenses, and therefore the oil prices so far are normal and there is no significant increase in them,” noting that “setting the price of a barrel of oil in the budget by 45 dollars is considered the net of these expenses that we receive considering that the cost of extracting oil It reaches between 15 and 17 dollars per barrel, added to the price determined in the budget .”
Cougar added that “Iraq has debts, as it borrowed internally and externally during the past years, and it also has commitments, so it needs large liquidity, and therefore this increase in oil prices is not sufficient to meet part of the state’s need despite reducing the budget and making it a budget similar to the emergency budget .”
Cougar pointed out, “If oil prices rise significantly, we will have several areas that we can benefit from. Either we go to a supplementary budget or adjust the bank reserve because it was 82 billion dollars, it fell to 56 billion dollars, now it began to rise to 65 billion dollars, and therefore We are trying to restore it to what it was, or we go to repay the debts owed by the state, including loans from Iranian companies, contractors’ dues, and foreign loans.”
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