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| Iraq |
| Oil prices may drag Iraq budget lower |
| 2009-03-01 |
| BAGHDAD - Iraq's parliament pushed back voting Saturday on this year's budget and could be forced to make further cuts because of falling oil prices. The latest delay in trying to ratify the current $64 billion budget proposal highlights the financial squeeze facing Iraq as declining oil revenues cut into reconstruction plans such as new roads and improved utilities — which the Shiite-led government hopes to use as showcases in national elections later this year. The pinch has also brought calls by Prime Minister Nouri al-Maliki for proposals to diversify Iraq's oil-dependent economy with expansion of agriculture and other trade. But Iraq's plans for this year have been dragged down along with the price of oil, which is now less than $45 a barrel after hitting highs last summer of $150 a barrel. A Sunni lawmaker, Ayad al-Samarraie, predicted the budget will face more trimming after several previous cuts from its original $79 billion. The current budget is based on a $50 a barrel projection. "We don't expect that oil will reach this price," said al-Samarraie, a member of the chamber's financial committee. He urged lawmakers to take a comprehensive look at all spending, suggesting that more money go to electricity and other public projects at the expense of deeper cuts in other areas. Shatha al-Mousawi, the Shiite member of the finance committee, called for possible sharp reductions in the National Security Adviser office, which was established shortly after the fall of Saddam Hussein in 2003. She said it has 377 employees and suggested cutting it to just 16. "The studies and reports show that the falling oil prices will continue for two or three years," she said. It was unclear when the budget could eventually come for a vote. Army Lt. Gen. Frank Helmick, commander of Multi-National Security Transition Command, told The Associated Press that the budget crisis would force Iraq to make some very difficult decisions about how to grow its security forces. "They are many, many hard decisions that they are going to have to make," he said. He said U.S. military advisers have been making recommendations to the Iraqi security officials on possible ways to deal with the shrunken budget. An example, Helmick said, could be reducing the number of Abrams tanks sought by Iraqi forces. He said essential services such as Iraqi police and military payroll, electricity and water could not be cut. |
| Posted by:Steve White |
| #2 You've a big surprise coming, general. Posted by: g(r)omgoru I don't think it's a surprise, Grom. The military knew as soon as the election was final they would be put in a severe bind. The question isn't whether the defense budget in this country is cut, but how much and where. Democrats HATE the military - it's made up of leaders, not sheep. |
| Posted by: Old Patriot 2009-03-01 15:08 |
| #1 An example, Helmick said, could be reducing the number of Abrams tanks sought by Iraqi forces. He said essential services such as Iraqi police and military payroll, electricity and water could not be cut. You've a big surprise coming, general. |
| Posted by: g(r)omgoru 2009-03-01 02:30 |