BAGHDAD - IRAQ'S Finance Ministry proposed a 2009 draft budget of 79 trillion Iraqi dinars (S$101.578 billion) and a deficit of 18 trillion Iraqi dinars, said the government spokesman on Sunday.

Mr Ali al-Dabbagh said the Cabinet held a special meeting on Sunday to discuss the country's finances in light of the global financial crisis and falling world oil prices.

The ministry based budget revenues on an oil price of US$62.5 (S$92.41) per barrel, he added. The government had to revise that from an original estimate of US$80 a barrel.

Oil prices have slipped sharply since summer highs. On Friday, oil for December delivery rose 27 cents to US$61.04 a barrel on the New York Mercantile Exchange.

Iraq is dependent on oil revenues for more than 90 per cent of its budget. -- AP