Government austerity measures: 90% reduction in official delegations and 50% reduction in car fuel allowances
Government austerity measures: 90% reduction in official delegations and 50% reduction in car fuel allowances
2026-01-27 00:02
Shafaq News – Baghdad
The Iraqi Ministry of Finance directed all state departments to implement the decisions of the Ministerial Council for the Economy, which included reducing the allocations for official assignments for state employees by 90% and prohibiting them except in cases of extreme necessity and with the approval of the relevant minister.
According to an official document obtained by Shafaq News Agency, the decisions also included reducing fuel quotas allocated to government vehicles by 50%, as part of a policy to rationalize spending and reduce waste in public resources.
The directives also stipulated the formation of specialized committees to inventory the assets of production and non-production vehicles in government institutions, with the aim of reorganizing their use and preventing misuse.
In the same context, the ministry confirmed that it will not grant letters of no objection to employees wishing to complete their studies inside and outside Iraq, as part of the procedures aimed at controlling expenses and enhancing financial discipline.
Earlier today, Iraqi economist Manar Al-Obaidi warned that Iraq is no longer in the stage of warning or anticipating the economic crisis, but is now “in the eye of the storm itself,” stressing that patchwork solutions and temporary remedies are no longer effective, and that things are out of control.
On Monday, an informed source told Shafaq News Agency that the Ministry of Finance had returned the payroll lists for a number of ministries and university employees, demanding the implementation of the Cabinet’s decision to raise university service allowances, which may lead to a delay in salary payments for days and perhaps until next month.
The source indicated that government banks, especially Al-Rafidain and Al-Rasheed, are suffering from a shortage of liquidity, calling for an audit of their assets, and warning that the continuation of these measures will increase the suffering of employees and requires urgent solutions to ensure the regular disbursement of salaries.
The implementation of paragraph (7) of Cabinet Resolution No. 40 of 2026 sparked widespread controversy in Iraq, after the Ministry of Finance clarified that the disbursement of university service allowances would be limited to employees “only those dedicated to teaching,” while the granting of these allowances to non-dedicated employees would be stopped in accordance with the provisions of the University Service Law No. (23) of 2008.
shafaq.com
