Amidst the decline in oil prices, the 2025 budget requires realism, not administrative red tape.
Amidst the decline in oil prices, the 2025 budget requires realism, not administrative red tape.
6-8-2025
Information/Report..
The Iraqi government is currently preparing to complete preparations for the 2025 budget, within the framework of the three-year budget approved by the Council of Representatives in 2023.
Despite the supposed readiness of the legislative process, the country is facing a significant delay in submitting budget schedules from the Ministry of Finance to Parliament. This has cast a shadow over several sectors, particularly civil servants and service projects.
Work on the 2025 budget comes at a time when Iraq is facing a difficult financial situation due to the decline in oil prices, which remain the primary source of public revenue.
A member of the Parliamentary Finance Committee, MP Moeen Al-Kadhimi, confirmed to Al-Maalouma News Agency that the budget tables being prepared by the Ministry of Finance were prepared in a routine manner that does not reflect the emerging economic changes. He called for these tables to be more realistic, based on actual revenues rather than estimated ones, and for spending to be aligned with available resources.
It was also noted that actual implementation figures for the 2023 and 2024 budgets were significantly lower than official estimates, indicating a persistent gap between planning, financing, and implementation, calling for a new financial approach based on flexibility and fiscal discipline.
Although Parliament has approved a three-year budget, the 2025 budget has not yet arrived from the Ministry of Finance, hindering the legislative discussions necessary for its approval.
Parliamentary sources confirmed that Parliament is prepared to hold an extraordinary session at any time to discuss these agendas as soon as they are received, but repeated delays by the Ministry of Finance are preventing this.
MP Zahra Al-Bajjari, in a statement to Al-Maalouma News Agency, held the Ministry of Finance fully responsible for the delay, stressing that the resulting damage was not limited to the delayed vote, but extended to include vital administrative matters such as transportation, bonuses, certificate calculations, promotions, and service, directly impacting a wide segment of government employees.
The effects of delays are not limited to the administrative aspect, but also extend to service and development projects, which rely on allocations included in the budget schedules for funding. The suspension or slowdown of these projects poses a direct threat to the quality of services provided to citizens, especially in governorates that rely heavily on central funding.
According to the Iraqi constitution, the Council of Representatives has the power to reduce financial allocations without increasing them.
The Parliamentary Finance Committee has indicated its intention to use this authority to adjust public spending in line with actual available resources, given the decline in oil revenues. This step will impose new standards in budget preparation, focusing on efficiency and effectiveness rather than broad estimates.
Confronting this new financial reality requires bold decisions and a cohesive political will that prioritizes the interests of citizens and the stability of institutions.
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