Economic expert: No loans for provinces in the absence of a budget; the alternative is borrowing with government guarantees.
Economic expert: No loans for provinces in the absence of a budget; the alternative is borrowing with government guarantees.
11-30-2025
Information / Baghdad…
Economic expert Dirgham Muhammad confirmed on Sunday that the Financial Management Law does not permit a caretaker government to grant advances to provinces in the absence of a budget. He explained that the government’s role is limited to disbursing salaries according to the previous year’s mechanism, while provinces can resort to borrowing from banks with government guarantees to complete their projects.
Muhammad told the Information Agency, “Next year’s budget will be significantly delayed due to the delay in forming the new government.” He indicated that “the approval of the 2026 budget may extend beyond the middle of next year, which will lead to the disruption of most projects, with one exception.” He
added, “Financial Management Law No. 6 of 2019 allows the government to disburse salaries from January 1st to December 12th, as in the previous year, but it does not authorize the caretaker government or the Ministry of Finance to grant temporary advances to the provinces.” He pointed out that “provinces can complete their projects by borrowing from government or private banks with government guarantees, with these amounts to be deducted later from their allocations once the budget is approved.”
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