PM’s financial advisor warns decline in oil prices will affect Iraq’s budget


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SULAIMANI — Mazhar Mohammed Salih, the financial advisor to the Iraqi Prime Minister, said on Saturday (March 18) the decline in oil prices will create a shortfall in the country’s budget.

Salih said oil prices have decreased for two main reasons. The first is a high economic pullback in industrialized countries causing western banks to collapse, the slowdown of economic growth and a reduction in the demand for oil.

The second factor comes from the Russian federation, which has begun to market its oil in India, China and Asia at less than $20 a barrel in global oil prices.

Mohammed said the drop in oil prices would affect Iraq's budget shortfall, which is currently estimated at 63 trillion Iraqi dinars.

He said the entire budget draft is now in front of the Council of Representatives, which has the duty to consider every possibility about the budget.

(NRT Digital Media)