Three years without financial discipline… Al-Anzi reveals the reasons for the economic crisis in Iraq
Three years without financial discipline… Al-Anzi reveals the reasons for the economic crisis in Iraq
2-3-2026
Information/Special..
Economic expert Duraid Al-Anzi warned on Tuesday of the worsening economic crisis in Iraq, as a result of the absence of financial and economic leaders under the caretaker government, and the reliance on impromptu decisions in managing public funds.
Al-Anzi told Al-Maalouma News Agency that “the year 2023 witnessed the approval of half a budget for six months, followed by the year 2024 with half a budget as well, which caused unplanned spending operations, and took on a promotional character, despite the implementation of some projects in an incomplete manner, and the imposition of excessive spending on them in Baghdad and a number of governorates.”
He added that “the major problem occurred in 2025 after the budget was completely absent, explaining that the budget represents a state of economic discipline and an appreciation of the state’s financial path, and with its absence, improvisation became a structural feature for three consecutive years, amid an uncalculated reliance on oil prices remaining high.”
Al-Anzi pointed out that “almost all economists objected to the high oil pricing in the budgets, explaining that adopting a price of $65 per barrel instead of $70 or $75 would have given the state a safety margin in case prices fell, but the accumulated deficit and unregulated spending exacerbated the crisis.”
He stressed that “the crisis can be dealt with internally through disciplinary measures, most notably reducing the salaries of the three presidencies by 10 to 20%, and transferring all financial resources of government departments to the Ministry of Finance, to be returned according to the controls of self-financing and scheduled expenditures.”
Al-Anzi stressed “the need for future budgets to be project budgets, not operational budgets, calling for the establishment of pharmaceutical factories, waste recycling with a capacity of up to 60 million tons, sewing factories and construction factories in every governorate, in addition to petrochemical factories, in order to contribute to employing the workforce and stimulating the local economy.”
Al-Anzi concluded by saying that “the absence of political stability, the delay in electing the president and prime minister, the continued unchecked spending, and the volatility of oil prices are all factors that create genuine concern about the future of the Iraqi economy.”
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