unless Kurdistan Region deposit oil revenues in the state treasury or loses its share of spending in the budget.

“The budget that swallow up excess expenditure will collapse if the state continues to pay the share of semi-autonomous Kurdistan Region, amounting to 17 percent of spending, despite Kurds retaining the proceeds of oil exports ,” Haidar al- Abadi , a leader in the coalition of Prime Minister , Nuri al-Maliki in a statement to Reuters , briefed by "Shafaq News”.

He added that the budget anticipates a deficit of about $ 21 trillion Iraqi dinars ( 18 billion dollars) on the assumption that the Kurds deposited oil export revenues amounting to 400 thousand barrels per day , a goal in which sources in the sector say that it far exceeds the current export capacity of Kurdistan Region about 255 thousand barrels per day.

Abadi pointed out that government spending rose by a large margin in the budget due to increases in pensions and minimum wages in the public sector as well as child benefits and allowances of the students .

He explained that the central government will be forced to reduce the share of the Kurds in the budget , pointing to remarks made ​​by Prime Minister , Nuri al-Maliki and Minister of Oil in the last few days .

He said that the deficit currently stands at 21 trillion dinars, and if increased by 15 or 16 trillion then the budget will collapse again in the estimation of the size of the extra deficit if Kurdistan Region didn’t deliver oil revenues .

Iraqi Minister of Oil , Abdul -Karim al-Laeebi threatened last week to take legal action and strong trade actions against Turkey and any foreign companies involved in what he called as " smuggling " of Iraqi oil.

The president of Kurdistan regional government , Nechirvan Barzani has arrived to Baghdad on Sunday for talks on the issue , which strained relations between Baghdad and Erbil .

Kurdistan attempts to sell oil and gas directly have angered officials in Baghdad, who assert that the federal government has the only right to manage energy resources of Iraq .

The Regional government said last week that oil began flowing in the new pipeline runs to Turkey which is expected to start the export at the end of this month then strengthen supplies in February and March .

But Prime Minister , Nuri al-Maliki threatened to reduce the share of the financial budget of Kurdistan if it goes ahead with plans to export without approval from Baghdad .