Iraq’s government has proposed an oil price assumption of $58 a barrel with total spending projected at 217 trillion Iraqi dinars ($166 billion), lawmakers familiar with the 2027 draft budget said on Tuesday.
The proposals would leave the budget with a deficit of more than 40 trillion dinars.
The legislation projects crude oil exports of around 4 million barrels per day, including shipments from the Kurdistan region, four members of the parliamentary finance committee said.
The government is also considering adjusting the dinar’s exchange rate to between 1,400 and 1,500 per US dollar from around 1,300 currently, the lawmakers said.
Oil sales account for the bulk of Iraq’s state revenues.
The Iran war and resulting disruption to shipping through the Strait of Hormuz have prompted Iraq to seek alternative routes and transport options after its Gulf crude shipments were interrupted.
(Reporting by Muayad Hameed and Ahmed Rasheed; Editing by Hugh Lawson and Joe Bavier)