Iraq's reform budget heads to parliament
Parliament is debating the 2021 budget, which is the first budget drafted based on the White Paper for economic reform.
The Iraqi parliament is debating the 2021 state budget, while voting is anticipated before the end of January 2021.
The state budget is projected at $113.2 billion, with an estimated deficit of $50.3 billion to be covered via borrowing, additional taxes and a currency devaluation by 18.5%.
On Oct. 14, 2020, the government approved an economic reform plan called the White Paper, which involves a shift in the country’s economic approach from a centrally planned economy to a market economy. It also consists of lowering the number of civil servants, supporting the private sector, reducing corruption and opting for good governance.
Iraqi Oil Minister Ihsan Abdul Jabbar stated Jan. 14 that oil prices are forecast to range between $42 and $44 per barrel in the 2021 budget, out of fear that "COVID-19 causes market fluctuation.” He added, “Iraq currently sells oil at a price higher than $50 per barrel. The additional dollars will go to the treasury.”
