As with every recent Iraqi budget, the contentious issue of Kurdistan’s independent oil ouptut and exports is generating political angst. Iraq’s federal government passed the draft 2021 budget to parliament in December, revealing an eyewatering ID58 trillion ($40.2bn) deficit (MEES, 22 May 2020).

The central bank also devalued the currency by 23% in a bid to alleviate financial pressure. More than 80% of state revenues are from dollar-denominated oil sales while most expenses are in local currency. (CONTINUED - 629 WORDS)