Iraq Faces Budget Cuts

The news relayed by Saleh confirmed that the upcoming austerity plan will not affect the salaries of state employees. “Austerity measures will not affect the salaries of government employees, the army and police security forces and the popular mobilization forces,” he said.

Saleh, who was newly appointed to his position, said that the government will reprioritize its expenses as it now faces low oil prices and the war with IS.

The drop of the price of oil to $77.83 per barrel was accompanied by increased spending on the war led by the Iraqi government against the extremist organization that took over one-third of the country.

The International Monetary Fund expected in October that Iraq's economy would witness a 2.7% recession this year due to IS’ expansion, which may be the first recession witnessed in the country since its occupation by US forces in 2003.

Saleh, however, downplayed the matter, and said, “Iraq is not witnessing real austerity measures but the government is cutting down the waste of money in its operating and investment budgets.”