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BAGHDAD, Aug 29 (Reuters) - A committee reviewing Iraq's budget proposals for 2010 has recommended spending plans be based on average oil prices of $60 per barrel and average crude exports of 2.15 million barrels per day, a government spokesman said on Saturday.
Iraq's approved federal budget for 2009 was based on income from oil prices averaging $50 per barrel.
Iraq hiked oil exports in July to 2.037 million bpd, their highest level since the 2003 U.S.-led invasion to topple Saddam Hussein.
The country is the holder of the world's third largest proven crude reserves but decades of war, sanctions and underinvestment have prevented it from significantly boosting output and exports.
Government spokesman Ali al-Dabbagh said the committee led by the finance minister had recommended that government ministries freeze operational expenses, such as on public sector payroll, at the same level as in 2009.
Additional revenues or savings will be allocated to the ministries' investment budget under the proposals, Dabbagh said in a statement.
In addition, the committee recommended increasing non-oil revenues through customs duties and taxes, and cutting the cost of the federal government's massive food ration programme by limiting free supplies only to the needy. (Reporting by Khalid al-Ansary; Writing by Michael Christie; Editing by Mike Peacock)