A government spokesman says Iraq's Cabinet has approved next year's budget, sending it to parliament for final approval.

Spokesman Saad al-Hadithi told The Associated Press Monday that the 2016 budget of 106 trillion Iraqi dinars (about $91 billion) will run with a deficit of 23 trillion dinars ($19.72 billion). Al-Hadithi added that the deficit will be relieved through loans from local and international lenders.

He said the budget calculations are based on an assumed oil price of $45 a barrel with an average daily crude oil output of 3.6 million barrels.

Iraq holds the world's fourth largest oil reserves, some 143.1 billion barrels, and oil revenues make up nearly 95 percent of its budget. Like other oil-reliant countries, Iraq's economy has suffered due to plummeting oil prices since last year.