Tumbling oil prices have forced the Iraqi government to revise its budget for 2015, reducing its forecast for oil prices from $60 to $55 per barrel.
This translated into a reduction in public spending to $105bn for 2015.
Prime Minister Haider al-Abadi said last week that he was concerned that lower revenues from falling global oil prices could hurt Iraq’s military campaign against insurgents.
Abadi said allies could help by potentially allowing Baghdad to defer payment for ammunition and weapons. It was not immediately clear what areas would be affected by spending cuts in the revised budget, which still needs to be approved by parliament. A vote is expected on Thursday.
Iraq’s budget for 2015 originally assumed an average oil price of $70 a barrel.
