The continuing decline in oil prices in world markets threatens the implementation of many of the items approved in the general budget, which relied on the financial surplus in oil prices, said the Iraqi parliament's finance committee.
Committee member Shawrash Mustafa said: "The significant decline in oil prices will affect the overall federal budget and increase the fiscal deficit."
The sale in oil prices in the international markets is witnessing a significant decline where the prices decreased by $30 (34,900 IQD) within a period of three months. The price reached $97 (112,800 IQD) per barrel.
The Iraqi government approved the 2012 budget in December. The budget amounts to $100bn (117tr IQD) and a deficit of up to $13.5bn (17tr IQD).
One of the items of 2012 budget in Iraq stated: "If the high price of oil reached more than $85 (98,800 IQD) per barrel, the amount of surplus of the budget will be distributed among the citizens, but the Finance Ministry confirmed that the value of the deficit and the surplus will not be known before the end of June.