The Political and Economic Expert, Jalil Al-Lami, warned of a major economic crisis that Iraq may go through, due to the alarming deficit in imports.
Al-Lami said in a statement to the National Iraqi News Agency (NINA): “Iraq may face a major economic crisis, due to the alarming inability of the country’s financial imports to cover the expected expenses during the next three years.
He explained: “The budget deficit is the negative balance of the state’s general budget, resulting from the fact that expenditures exceed revenues, and the government is forced in this case to finance this deficit through borrowing, which leads to an increase in public debt.”
He pointed out that the Iraqi economy depends mainly on oil, as its revenues constitute about 95% of the value of annual government spending.
Al-Lami concluded by saying: “The stage is very difficult and is considered a difficult challenge at all levels of the state, whether foreign or internal policy in all its details, especially since the backbone of the country is controlling the budget at a time when the minimum monthly spending is $7 billion.”
Source: National Iraqi News Agency