Borrowing policy by legislative law
Borrowing policy by legislative law
2026-07-25 02:50
Haider Al-Sheikh
The Iraqi government, in coordination with the Finance Committee in the House of Representatives, is trying to legislate a law on (borrowing, grants and subsidies) that serves the economic and financial interest in Iraq, and this law will be an alternative to the general budget law for the year 2026.
The government is trying, through the legislation of the borrowing law, to secure salaries, cover the financial deficit and ensure the continuation of government spending in the absence of the federal budget law, and this law will be similar to the Emergency Support for Food Security and Development Law that was approved by the government of Mustafa Al-Kadhimi in coordination with the House of Representatives in 2022.
Emergency Support Act for Food Security and Development
The main objective known as the Food Security Law, which was approved with a total financial value of 25 trillion Iraqi dinars, is to meet basic needs by securing food and providing the necessary financial allocations for importing and purchasing wheat and crops, in addition to securing the items of the ration card to face economic challenges and the global rise in food prices.
The law also included allocating funds for the development of regions and governorates, supporting the electricity sector and service projects. The most prominent aspect of the law was (the regularization of contract holders and daily wage workers, and support for the segment of volunteer lecturers and top graduates).
Borrowing, Grants and Subsidies Law
Four years after the enactment of the Emergency Food Security Support Law due to the economic situation and the decline in oil prices, the government is now bringing the Food Security Law back to the forefront, but with a different name. Therefore, the government is trying to legislate the (Law on Borrowing, Grants and Subsidies) with objectives similar to the objectives of the previous law.
The amount allocated for the borrowing law is not specified in the current time. The borrowing will be between (15-20) trillion Iraqi dinars, but external borrowing depends on international grants and aid, as the United States of America, Qatar, the Emirates, Japan, China and other countries will grant Iraq money in the form of grants and financial loans that will reach (20) trillion Iraqi dinars.
The main objective of the borrowing law is to secure and disburse employee salaries and secure the necessary needs for public spending until the end of the Strait of Hormuz crisis and the resumption of oil exports, and to release funds to finance infrastructure projects. Many infrastructure projects are waiting for the approval of the borrowing law to provide funds and start work.
shafaq.com
