Baghdad, Iraq – Iraq continues to prioritize Economic Stability First by carefully managing its financial resources and budget strategies. The Prime Minister’s Financial Advisor, Mazhar Muhammad Salih, detailed the government’s strategy to cover the projected deficit in the federal budget.
He explained that the national budget was built on cautious assumptions. Officials based the revenue model on an oil price of $70 per barrel. This decision helps reduce the risks caused by global oil market volatility. Planners also estimated oil exports at 3.4 million barrels per day, with annual spending approaching 200 trillion dinars.
Salih confirmed that the projected deficit stands near 64 trillion dinars. He clarified that the government will finance this gap through well-defined methods. When the deficit occurs, officials will fund it using internal financial sources. Only limited support will come from international financing, and only when necessary.
The primary domestic source for deficit financing remains government bank loans. These short-term loans help cover immediate needs when deficits arise. Salih noted that during the first quarter of 2025, borrowing remained low. The government borrowed less than 6% of the annual planned ceiling.
Salih also emphasized the strong coordination between fiscal and monetary policies. He highlighted their combined role in ensuring long-term financial balance. This cooperation plays a key role in protecting the national economy from sudden drops in oil prices.
Through this coordination, the government safeguards essential expenditures. These include salaries, pensions, and social welfare programs. Salih also stressed continued funding for basic public services such as healthcare, education, water, roads, and electricity.
The government remains committed to public investment and development. Officials plan to keep supporting essential sectors like agriculture and infrastructure. Every decision aims to keep Economic Stability First while maintaining service delivery.
By repeating its commitment to Economic Stability First, Iraq shows determination to build a stronger and more resilient economy. This approach ensures stability even in uncertain global conditions.
