Iraq’s budget problems go beyond Erbil-Baghdad crisis
As the conflict continues between Baghdad and Erbil regarding Iraqi Kurdistan's share in the state budget, there is a pressing need for the government to address other budget-related issues, namely its near total dependence on oil.
The Iraqi parliament still has not been able to approve the draft general budget for 2014, prompting Prime Minister Nouri al-Maliki to warn of the possibility of a major financial crisis and a disruption of state institutions.
This delay in ratifying the budget is mainly because of the continuing dispute between Baghdad and the Kurdistan Regional Government (KRG) regarding Iraqi Kurdistan's share of the budget. According to a member of the Maliki-led State of Law Coalition, the Kurds are demanding a 17% share of the budget, without deducting the revenues they obtain from the approximately 400,000 barrels of oil the region exports daily according to Iraqi government’s calculations.
