The perils of basing your budget on oil revenue: the Iraqi government is practically hemorrhaging money thanks to falling oil prices, and that’s causing a
“„The budget squeeze is also heightening concerns about the Shiite-led Iraqi government’s ability to continue paying U.S.-formed — and formerly U.S.-funded — Sunni paramilitary groups that are now working under its supervision. The government promised to shift 20 percent of the 94,000 men in those groups to security jobs, but because of the hiring freeze, fewer than 5,000 of them have made the transition.
“„In recent months, many Sunni guards have walked away from their checkpoints after working unpaid for months. U.S. officials fear that the dissolution of the groups could refuel the insurgency, widen the sectarian divide and destabilize the government.