Baghdad, Sep.15 (AKnews) - The deficit of 35 trillion IQD ($29.7 billion USD) in the 2012 Iraqi federal budget will not be paid from the financial reserve of the Central Bank of Iraq.
Salam al-Quraishi, a government adviser familiar with the issue, told AKnews, the government would rather rely on raising the revenues in the oils exports, in the industry, as well as through a new law of customs to expand the estimated budget of 180 trillion IQD (152.8 billion USD).
"The Central Bank has 58.9 trillion IQD ($50 billion USD) in financial reserves in order to keep the Dinar's exchange rate. The government can't legally exploit them to balance the budget", Quraishi said.
"The oil ministry will develop a mechanism to raise the export of oil at the beginning of next year to 2.8 million barrels per day of crude oil to fill the deficit", Quraishi said, but did not give further details.
In 2009, Iraq produced 2.5 million barrels of oil per day (bopd). According to previous announcements by the Iraqi government dating back to 2010, the oil production is already supposed to rise up to 12 million bopd in 2016.
Currently, Iraq finances 95% of its annual budget through oil revenues.
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