A sharp increase in oil prices over the past months will boost Iraq’s revenues to nearly 150 trillion Iraqi dinars ($115 billion) in 2023, an Iraqi deputy was quoted on Thursday as saying.

Mouin Al-Kadhmi, a member of Parliament’s Financial Committee, said higher revenues would slash Iraq’s 2023 record budget deficit.

“We expect much lower budget deficit this year thanks to an increase in the country’s revenues due to higher crude prices,” Kadhimi told the official Alsabah newspaper.

Iraq projected a shortfall of IQD64.3 trillion ($49 billion) in its 2023 budget of IQD198.9 trillion ($153 billion), which is based on an average oil price of $70/barrel, far below the current crude price level of nearly $90.

The deficit means that Iraq assumed revenues at around IQD135 billion ($104 billion), most of which come from oil exports.

According to the paper, the budget law stipulates that any increase in oil export earnings would be used to lower the deficit.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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