Iraq: Low Oil Prices Force Iraq to Pass Austerity Budget As It Struggles to Pay Soldiers Fighting ISIS

Feb 4, 2015 | Campbell MacDiarmid, National Post
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ERBIL, Iraq — Low oil prices have forced an austerity budget on Iraq as it struggles to rebuild its army and rally support across the sectarian divide to fight Islamic State of Iraq and al-Sham (ISIS).

Since June 2014, when Brent crude was trading at about US$115 a barrel, oil prices have plummeted nearly 60% — with current prices under US$48.

Iraq has been hit especially hard as at least 85% of its revenues come from oil sales.

This is reflected in its latest budget, passed last Thursday. At 119 trillion Iraqi dinars ($133.75-billion), it is 15% smaller than projected only a few weeks ago.