Iraq’s parliament has passed a ID138.4 trillion ($119.3bn) budget for 2013, despite protests and boycotts from Kurdish representatives. 

The budget allocates just $644m for the payment of international oil companies operating in the semi-autonomous Kurdistan region of Iraq. This is just a fraction of $3.5bn sought by the Kurdistan Regional Government.

Kurdish members of parliament are now expected to go to the federal court to dispute the budget.

The 2013 Iraq budget is almost 20 per cent higher than the 2012 budget. Revenues are estimated at ID119.3 trillion ($102.8bn), based on crude oil exports of 2.9 million barrels a day (b/d) which includes 250,000 b/d from the Kurdish region, and an average oil price of $90 a barrel.

The Kurdish region had previously been required to contribute 175,000 b/d to Iraq’s exports.

The budget earmarks ID55 trillion ($47bn) for project expenditure, while IR83 trillion ($71bn) is set for ongoing expenses.

The budget includes a planned deficit of IR19.1 trillion ($16.5bn), which is expected to be covered by internal borrowing, cash from the Development Fund for Iraq and expected savings from higher oil prices and exports.