BAGHDAD, Aug 6 (KUNA) -- Iraq said on Sunday it would reduce dependence on oil revenues, which currently provide 95 percent of the federal budget, by 10 percent.
Oil revenues will now contribute 85 percent to the budget as Baghdad looks to diversify its sources of income as a result of the changes, government spokesperson Saad Al-Hadithi said.
The government took the decision due to the collapse of oil prices across global markets, which has led to a domestic financial crisis.
This crisis has forced the government to assume austerity measures in order to meet its financial obligations.
These responsibilities include arming soldiers in their anti-terrorism operations, paying the wages of state employees - comprising some seven million - and government spending on other sectors, said the official.
Due to austerity measures, the government has successfully reduced public spending by around 50-60 percent, he added. (end)