Iraqi lawmakers on Thursday approved the government's 2019 budget, which at $111.8 billion is one of the largest ever for the oil-rich country. It represents a nearly 45 percent increase from last year and awards even more money for public salaries, including those of the northern Kurdish region.
Nearly 90 percent of the budget comes from oil revenues. Iraq expects to export 3.9 million barrels per day in 2019, including 250,000 bpd from the Kurdish region, at an average of $56 per barrel. The current price of crude sits at $63 per barrel. The deficit is expected to more than double to $23.1 billion, while investments increase to $27.8 billion.
The draft bill was originally submitted to parliament in October, but has been fiercely debated since then. MPs from provinces ravaged by the fight against the Islamic State group criticised it for not allocating enough reconstruction funds to their regions. Another debate raged over the share that would be allotted to the administratively autonomous Kurdish region.
MPs had originally scheduled a session for 1:00 pm on Wednesday, but delayed it to 7:00 pm and voted article by article, finishing just after midnight. The final budget must now be signed by President Barham Saleh before being published in the government's gazette.
The government proposed $52 billion in salaries, pensions, and social security for state workers - a 15-percent jump from 2018 and more than half the total budget. Iraq suffers from rampant unemployment, particularly among youth. The lack of jobs and dismal state of public services including water and electricity sparked widespread protests last summer.