Iraq’s government will today start to discuss a $86.4 billion draft budget for next year, or 20 percent more than in 2010, As Sabah reported, citing Finance Minister Baqir Jabr al-Zubaidi.
The budget for 2011 is based on an oil price of $70 per barrel, Zubaidi told the newspaper.
Iraq’s crude oil exports rose 9 percent in September to 60.6 million barrels, the State Oil Marketing Organization said.
Iraq’s Parliament approved on Jan. 26 an 84.7 trillion- dinar ($72.5-billion) budget for federal spending this year, based on an oil price of $62.5 per barrel.
The country’s oil sales will “almost” finance an expected budget deficit of about $18 billion for 2010, al-Zubaidi said on June 10. Iraq had a deficit of $19 billion in 2009.
Al-Zubaidi said at the time that Iraq is budgeting to increase spending to $100 billion by 2013.
Iraq holds the world’s fourth-largest oil reserves, with its 143.1 billion-barrel reserve behind only Saudi Arabia, Canada and Venezuela.
Iraq is trying to overcome a legacy of war, economic sanctions and under-investment in its oil fields. It has awarded 12 oil service contracts and three natural gas licenses, hoping to boost production of its most prized exports.