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Iraq faces budget cuts

Iraq may be planning austerity measures across its institutions, potentially cutting the salaries of 4 million public employees, to face the dropping price of oil and the war against the Islamic State.
People work 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 production
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Sana al-Khafaji, an employee in Iraq’s Ministry of Construction and Housing, was surprised by the $100 deduction from her monthly salary paid by the Iraqi government, following news about an expected government austerity plan to be adopted by Haider al-Abadi’s government to reduce the waste of public funds and compensate for the substantial expenditures of the previous government.

The state of austerity that Iraq is about to face is also caused by a drop in crude oil prices and the multifront war against the Islamic State (IS) in several provinces north and west of Baghdad.

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