I was reading some of the notes from the Iraq 2015 Federal Budget, and it looks like the Iraqi government will not be asking for a loan from the International Monetary Fund (IMF). Instead of a loan from the IMF it will be receiving loans of approximately $9 billion dollars from the State-Owned Banks.
Inside the Iraq federal budget, there are unresolved issues. One is the oil deal between the Kurdistan and the central Baghdad government. The problem is with structuring the oil agreement. Other obstacles are with reducing the Ministry of Health budget.
The Iraq budget deficit is approximately $20 billion, and it will be hard to cover without borrowing the money or raising taxes. The Iraq government has placed a 15% tax on cell phone cards and 6% tax on vehicle sales.
The Internet gurus would have you believe that Iraq is heading in the right direction. After all, they just replaced Nuri al-Maliki with Haider al-Abadi as the countries Prime Minister. I have told you in the past that the Iraqi government has an enormous challenge on their hands. For starters the Islamic State (ISIS/ISIL) militants have taken over a large portion of the Sunni areas in northern Iraq. When ISIL captured several Iraqi towns the Shiite Cleric Sistani sent out a call for everyone that qualify to join the security forces and defend Shiite shrines. The other problem the Iraqi government is going to have is the Shiite militias that operate in Baghdad. The Shiite militias are operating independently from the government. The Shiite militias take orders from Clerics and local Imams and not from Prime Minister al-Abadi. You can see this scenario where checkpoints are displaying the Militia flags instead the Iraq flag. Prime Minister Al-Abadi has a policy for the Iraqi army to display the Iraq flag and not the Shiite militia flags. With this scenario, there is no Iraq unity.
I hope that the Prime Minister can truly unite the country, but he is going to have a tough time. The Iraqi government has still not given weapons to the pro-government Sunni tribes that want to fight the ISIL.
Don’t be surprised that those Sunni groups align themselves with the Islamic State in the future