Iraqi parliament approves 2016 budget draft at 88 bln USD

The Iraqi parliament on Wednesday approved the budget proposal for next year with over 88 billion U.S. dollars, with a deficit of about 20 billion dollars.

The proposed budget was based on an average oil price of 45 dollars per barrel and export of 3.6 million barrels of crude oil per day (bpd), including exporting 250,000 bpd from the semi-autonomous region of Kurdistan and 300,000 bpd from federal oilfields in Kirkuk province.

The parliament also approved that 17 percent from the total expenditures of the national budget to be paid to Kurdistan regional government.

On October 18, the Iraqi cabinet approved 2016 budget with about 87 billion U.S. dollars, with a deficit of about 19 billion dollars, basing on the same average oil price of 45 dollars per barrel and export of 3.6 million bpd.

As the crude oil price sharply decreased from the world prices during the past few years, the government and the parliament were obliged to design the 2016 draft budget in the light of the de facto situations and proposed reduction on public expenditure by combating extravagance in the state's revenues, as well as diversifying sources of national income which mainly depends on oil revenue.

According to Iraqi law, the annual budget must be approved by the Iraqi presidency after being approved by the parliament.

Iraq's economy relies on oil for more than 90 percent of its revenues.

In 2010, Iraq announced that its proven oil reserves had increased to 143.1 billion barrels from the previous estimation of 115 billion barrels. Endit