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Budget failure creates more economic woes for Iraq

Iraq failed to agree on a budget for 2014 and seems set to fail on agreeing to a 2015 budget; economists warned that this would only add to the nation's financial problems.
A man works at the West Qurna oilfield in southern Basra October 13, 2014. Oil prices are hovering just above $90 per barrel, a level last seen in June 2012, putting a strong spotlight on OPEC producing countries.  They face calls to cut output at, or before,  a policy meeting in late November to prop prices up as some are already feeling the pinch of sub-$100 oil through increased budget pressure. Global oil prices are collectively reflecting the sweeping impact of a U.S. shale oil boom, with its productio
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BAGHDAD — With persistent hurdles delaying the approval of the 2014 budget, new ones are standing in the way of the 2015 budget, including the drop in oil prices on global markets and the deduction of the north oil revenues from Iraq’s crude oil production due to military operations following the Islamic State’s (IS) control of large areas of northern and western Iraq since June 10. Moreover, the Kirkuk field’s oil production, which is estimated at 400,000 barrels per day (bpd), was excluded from the total Iraqi exports after peshmerga forces took control of the field. This resulted in disputes between the central government and the Kurdistan Regional Government (KRG) over the oil exports of Kirkuk and other oil fields in the Kurdistan region. Add to this the rise in military spending.

According to the Iraqyoon News Agency, with the end of 2014 just around the corner and with the late budget approval and the former government’s spending of all oil revenues of the first seven months, the budget amendment and approval is becoming a hard task.

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