An economist reveals the fate of the 2026 budget: The government is printing money to secure salaries.
An economist reveals the fate of the 2026 budget: The government is printing money to secure salaries.
6-8-2026
Information / Special..
Economic expert, Dirgham Muhammad Ali, ruled out the approval of the general financial budget for the current year 2026, attributing this to the lack of time and the lack of sufficient time space to pass it within the House of Representatives.
Ali told Al-Maalouma that “the current direction of the government is entirely focused on securing the salaries of employees and retirees only, based on the financial spending rule (1/12) of actual expenditures.
He added that “Iraq is currently going through a critical phase and has no real resources that meet the level of expenditures, indicating that the government is now resorting to printing currency and internal and external borrowing just to pay salaries.”
The economist pointed to “historical precedents in Iraq where the general budget was not approved due to political and governmental laxity in this complex matter,” noting that “there is a trend to completely change the philosophy of the budget starting from next year.”
He added that “the expected new formula will be based on (project and program budgeting) instead of the traditional (item and paragraph budgeting), considering this shift a step and an advanced stage in public finance management, despite the current challenges facing the Iraqi economy.”
In recent years, several general budgets have been stalled due to political and financial reasons, as well as disputes over provincial allocations and the mechanisms for distributing funds. This has negatively impacted the implementation of government projects and plans. Meanwhile, Iraq is facing a severe financial crisis this year due to the halt in oil exports caused by the closure of the Strait of Hormuz. There are no alternative export routes or sufficient export channels to compensate for the lost volumes, which threatens public revenues and increases pressure on the budget and government spending.
almaalomah.me
