Iraq: Sums don’t add up for Kadhimi’s under-pressure government

Mustafa Al-Kadhimi’s government is under extreme economic, as well as political, pressure, led by the demands of maintaining bloated state sector budgets, which are central to Iraq’s political patronage machine; current spending has inflated to some $6bn-7bn/month to keep ministries operating and pay government salaries and pensions. This is far more than revenues will provide, as recognised by a borrowing law which would allow the government to draw $3bn/month from Central Bank of Iraq (CBI) reserves.