Erbil Baghdad threaten to cut off its share of the budget in 2016

Writings Monday, 21 September 2015

Mohammed wrote and Mah: A member of the Finance Committee in the Iraqi parliament, on Monday, as the pursuit of the Commission to the deduction of the Kurdistan region's share of the federal budget for 2016 "for his lack of oil in agreement" with the federal government in Baghdad.
Jubouri said in a press statement, "The draft of the Federal Ministry of Finance to balance the 2016 calculated according to the share of the region's oil export agreement 550 000 barrels per day, but we are not convinced of this because the region has failed to do in the current year budget in 2015".
He added: "We have directed the Finance Committee to stand on the seriousness of the Kurdistan region in this Agreement and his commitment to do and if we did not see that we will try to carve out the region's share of the budget (revenues and expenses), and that only is financially whether to sell oil or other in order to achieve their financial resources."
Under the agreement, which was approved at the end of last year between the Kurdistan region and the central government, to assume the province exported 550 thousand barrels of oil per day from Kirkuk (northern fields) through pipelines that stretch of northern Iraq, and the oil fields of the region, under the supervision of the Iraqi oil marketing company "Sumo" , compared to the central government pledged to allocate 17% of the value of the general budget of the province, along with the province paying the staff and the salaries of the Peshmerga forces.
It is noteworthy that Iraq is facing an economic crisis forced him to reduce the size of the financial budget as a result of the drop in oil prices below US $ 50 per barrel, and start a policy of austerity, while the Ministry of Finance announced that it will increase taxes on some of the services provided.