BAGHDAD, Dec 16 (Reuters) - The Iraqi cabinet has again agreed to rein in its spending plans for 2009 due to falling oil prices, the government said on Tuesday. Government spokesman Ali al-Dabbagh said in a statement that the cabinet had agreed to accept recommendations made by the cabinet's economic committee to reduce planned budget costs. The statement did not give any additional details. Also on Tuesday, the Finance Ministry said in a statement posted on its website that the cabinet's economic committee met to discuss the global financial crisis and "the review of the 2009 budget based on the price of oil at $50 a barrel and oil export capacity reaching to 2 million barrels a day." In November, the cabinet approved a $67-billion proposed budget for 2009 based on an oil price of $62 a barrel. That proposed budget was already $13 billion lower than Iraq's original spending plans, which officials concluded would prove impossible due to the sharp drop in the price of oil, which accounts for almost all Iraqi government revenues. Since then, officials have said plunging oil prices would necessitate even more conservative spending. Oil prices have dropped more than $100 a barrel from record highs over $147 a barrel in July. U.S. crude <CLc1> was trading at around $43 a barrel on Tuesday. Iraq's proposed budget must be approved by parliament. (Writing by Wisam Mohammed and Missy Ryan; editing by Diane Craft)
The wreckage of a vehicle used in a bomb attack lies on a road in Baghdad December 16, 2008. A car bomb exploded in central Baghdad on Tuesday targeting a convoy ...
