Iraq is planning to add between $2.8 billion and $3 billion to its 2009 budget as a result of increased crude oil production and oil prices, the country's Finance Minister Bayan Jabor said Wednesday.
Iraq has had to cut its 2009 budget three times to $58.9 billion from a projected $80 billion because of falling oil prices and output.
But oil production increased during the first half of July to 2.15 million barrels a day from 1.85 million barrels a day last year and increased overall during the first six months of this year, Jabor told the Al-Iraqia satellite channel. Prices have increased to between $60-$65 a barrel from as low as $30 a barrel at the beginning of this year, he said. Iraq is dependent on oil sales for some 90% of government revenue.
Iraqi government officials have been under intense pressure to show signs of economic improvement amid a relative improvement in the security situation. Iraq's crude oil production remains below pre-war levels.