The Iraq government on Sunday submitted a revised draft budget for approval by MPs, raising projected public spending as oil prices have increased, a government spokesman said according to AFP.
The new budget is estimated to have an overall expenditure of US$81.86 billion with income at $68.56 billion leaving a deficit of $13.3 billion but Ali al-Dabbagh said that this deficit would covered by “money accumulated from past surpluses and from internal and external loans,” AFP quoted him as saying.
The new revised budget is based on an average oil price of $76.5 per barrel a projected export amount of 2.2 million bpd including 100,000 bpd of exports from Iraq’s Kurdish region in the north.
A previous draft budget submitted on December 1 estimated spending of $78.8 billion, a figure which assumed oil prices at $73 per barrel.
Al-Dabbagh said that $56.44 billion of the overall expenses will go into operating costs, mainly towards salaries and pensions for civil servants with the remaining $25.42 billion earmarked for investment.
Over two thirds of Iraq’s revenue comes from oil exports which mainly go refineries in Asia. Â Energy sales are expected to make up 90% of revenues for the oil-dependent economy.
 Iraq’s current oil production stands at 2.5 million bpd, with exports on average at 2 million bpd, however production is expected to rise to 3 million bpd by the end of this year. Iraq has not exported 2.2 million bpd oil since the 2003 invasion.
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