Iraq’s parliament has approved a budget of ID104 trillion ($88bn), based on crude exports of 3.8 million barrels a day (b/d) and an oil price of $46 a barrel.

It is the first budget that has been approved since Iraq declared victory over Islamic State in Iraq and Syria (Isis).

The budget cut the Kurdish Regional Government’s (KRG) share of the national budget from 17 per cent to 12.67 per cent.

In response to the cut, Kurdish lawmakers boycotted the vote, and there are fears that it could negatively impact ongoing talks between Erbil and Baghdad over restarting exports from Kirkuk via a pipeline controlled by the KRG.

The government said on Tuesday it had reached an agreement with the Kurds to resume Kirkuk oil exports through Turkey’s Ceyhan port.

Since then, the Kurds have said there is no concrete agreement with Baghdad.

The projected 3.8 million-b/d export quota in the budget includes a 250,000-b/d contribution from the Kurdistan region, lawmakers said on Saturday.

Last month, Iraq received pledges of $30bn, mostly in credit facilities and investment, from allies at a reconstruction conference in Kuwait, but this fell short of the $88bn Baghdad says it needs.

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