Iraq's parliament gave final approval on Sunday to an $82.6 billion budget for 2011 based on an average oil price of $76.50 per barrel and 2.2 million barrels per day in crude exports. The deficit was projected at $13.4 billion. About 95 percent of Iraq's government budget comes from oil revenue.
The budget allocated $25.7 billion for investments and $2.05 billion to pay oil firms' investment costs. Passage of the budget was held up for months by political haggling.
Budget shortfalls challenge Iraq's ability to rebuild after years of conflict following the US-led invasion in 2003. But officials have said the deficit could be wiped out if world oil prices stay high.
Violence has subsided in the last three years and the government has announced major projects to refurbish oilfields and infrastructure and to construct housing.
The Opec producer has signed deals with global oil firms that could boost its output capacity to 8-12 million bpd, rivalling top producer Saudi Arabia, in about six time. Current production is 2.7 million bpd.
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