By Xinhua,
Baghdad : Iraq’s 2009 budget was cut to 67 billion U.S. dollars as a result of falling global oil prices, Finance Minister Bayan Jabr Solagh said Saturday.
“We have a budget of 80 billion dollars as had been proposed for the year 2009, but later the budget was lowered to 67 billion dollars after meeting with the International Monetary Fund (IMF) because of the falling oil prices,” Solagh said in the opening session of the U.S.-Iraqi investment conference.
Iraq needs about 400 billion dollars to enhance its existing infrastructure, making it vital to bringing investments to the country in many sectors, including electricity, oil, refineries, housing and banks, Solagh said at the conference.
Solagh said 15 billion dollars of the budget will go to help rebuild deteriorated infrastructure, energy and oil facilities.
Iraq has the world’s third largest oil reserves and the oil incomes is the mainstay of its revenues. It is producing roughly 2.5 million barrels a day, mostly for export.
The long-running sanctions and violence, however, have significantly hindered its ability to improve production.
Crude oil prices have plummeted from the record 147.27 dollars a barrel in July to currently below 70 dollars a barrel.
Deputy U.S. Treasury Secretary Robert Kimmitt, Deputy U.S. Commerce Secretary John Sullivan as well as U.S. Ambassador to Iraq Ryan Crocker attended the meeting.