Debate Renewed Over Oil Revenue Surplus

Specialists estimate the total surplus value of oil revenues to amount to 5 trillion Iraqi dinars ($4 billion) per year.

Speaking to Al-Monitor, Salman al-Moussawi, a member of the parliamentary economic committee, said, “The distribution of the state revenue surplus can be achieved directly, namely in cash to citizens, or indirectly, by increasing wages, salaries, pensions and providing loans.”

Moussawi warned, “The first way [direct distribution] may lead to inflation, and will not be beneficial for the people.” He gave Iran as an example, “which distributed cash, yet the price of fuel, gas and food increased.” He continued, “Today, Iran is considering another way, such as through the provision of permanent subsidized or almost-free goods.”

Moussawi said, “The other way [indirect distribution] is more beneficial for individual citizens than the first one, which is used for electoral propaganda.” He explained, “The second way consists of the distribution of industrial, agricultural and real estate loans by the government without long-term interests and by supporting the private sector. This will create new job opportunities,” and allow “salaries and pensions to be raised.”

Moussawi confirmed, “The parliamentary economic committee demanded the establishment of a fund to support the private sector, and from which a sum not exceeding $140 billion of the state budget will be deducted. … Of the state budget 70% goes to operating expenses [which includes salaries], and the government has to think of future generations and protect the country’s resources from being depleted.”

For his part, Abdul-Hussein Abtan, another committee member, told Al-Monitor, “So far, the resources have not been distributed to Iraqis because oil exports have not yet reached 3 million barrels per day, as was set in the 2013 budget.” He said, “The budget deficit for the current year reached 20 trillion Iraqi dinars [$17.2 billion].”

Abtan said, “When the 2013 budget was put to vote, two proposals were made. The first is to distribute the surplus to citizens in cash, and the other is the approval of a supplemental budget by parliament.” He added, “The second proposal was agreed upon, but the budget was subject to a large deficit that is up to 20 trillion dinars, because oil exports did not reach the required limit of 3 million barrels per day.”