NEWS

Iraqi parliament in session / File Photo

05/12/2016 - 21:57 0
Baghdad Approves KRG Budget in Return for Oil

The Iraqi Parliament on Sunday approved the Kurdistan Region's share of the national budget, which amounts to approximately 17% of the national budget.

According to the agreement the salaries of 740,000 Kurdistan Regional Government’s (KRG) employees and Peshmerga forces will be paid for by the Iraqi government.

Kurdish MP Adil Nuri spoke to Bas News and said that "In return, the KRG has to deliver 250,000 barrels of oil per day (bpd) from the Region’s oil fields as well as handing over 300,000 bpd to the Iraqi government from Kirkuk oil fields."

The Kurdistan Democratic Party (KDP) MPs boycotted the vote in Parliament while Patriotic Union of Kurdistan (PUK) and Gorran (Change Movement) and Komal (Kurdistan Islamic Group) participated.

Meanwhile Qubad Talabani, the KRG's Deputy Prime Minister has said austerity measures will continue in 2016.

Speaking at a Kurdistan Oil and Gas conference in London Talabani said that the KRG region had suffered from the Iraqi budget cut in 2014, the war with ISIS that began that summer and the subsequent influx of refugees and IDPs who numbered almost two million, coupled later with "a devastating blow" of low oil prices.

The KRG has faced an economic crisis since a dispute with Baghdad in early 2014 saw its share of the Iraqi federal budget delayed. Erbil increased independent oil exports in an effort to make up for dwindling payments, further straining relations with the central government.

Source: Bas News, Rudaw, NRT