Iraq’s cabinet approves 2021 draft budget of $103 billion amid low crude

Iraq’s cabinet on Monday approved a 2021 draft budget of 150 trillion Iraqi dinars ($103 billion) as the country wrestles with an economic and financial crisis due to low crude prices.

The budget deficit would be estimated at 63 trillion dinars ($43 billion), two government sources said.

The draft 2021 budget is based on a world oil price of $42 a barrel and expected oil exports of 3.25 million barrels per day (bpd), including 250,000 bpd from the Kurdish region, the officials said.

But despite approval of the budget, which should be referred to parliament for final approval, disputes between the central government and semi-autonomous Kurdish region are still unresolved, a government senior economic advisor said.

“Differences between Baghdad and Kurdish delegates are still persisting over Kurdish oil exports and the region’s debts. It’s too complicated for now to reach an agreement,” said a senior government advisor.