Iraq says to cut 2017 budget gap on lower expenditures, higher oil income

An Iraqi labourer turns a valve at an oil refinery in the newly opened section at the oil refinery of Zubair, southwest of Basra in southern Iraq, on March 3, 2016. (AFP)

Iraq plans to narrow its public deficit by 38 percent next year thanks to lower expenditures and higher oil income, Prime Minister Haider al-Abadi said on Tuesday.

The government forecasts a $12.90 billion (15 trillion dinar) deficit in 2017, he told a news conference in Baghdad. The shortfall is projected this year at 24 trillion dinars.

The government said last week it expects to sell 3.75 million barrels of oil per day next year at a price of $42 a barrel, higher than in recent months.

The government's crude oil exports ran at a rate of 3.28 million bpd in September, selling at an average price of $38.9 per barrel, according to the oil ministry.

The 2017 budget forecast a drop in expenditures to 90.224 trillion Iraqi dinars from 106.9 trillion projected this year, the government said last week.

Last Update: Wednesday, 20 May 2020 KSA 09:48 - GMT 06:48