Prime Minister’s Advisor: Government moves to enhance spending efficiency
Prime Minister’s Advisor: Government moves to enhance spending efficiency
07/01/2025
The Prime Minister’s Financial Advisor, Dr. Mazhar Mohammed Saleh, revealed signs of a clear government move to reconsider a number of spending items, particularly those related to untargeted subsidies, excess administrative expenses, and ineffective allocations. This is part of ongoing efforts to enhance spending efficiency and ensure sustainable financial stability in the country.
“Iraq’s fiscal policy possesses sufficient flexibility to sustain public finances, especially as we approach the second half of the fiscal year,” Saleh told Al-Sabah. He noted that “the pressures resulting from fluctuating oil revenues have not affected the government’s ability to cover its basic operating and investment expenses.”
He explained that “the government continues to need structural reform to boost non-oil revenues and reduce financial waste,” noting that “reviewing budget items in the second half of the year will be a crucial step toward maintaining financial balance, especially in light of the geopolitical and economic shifts in the global energy market.”
He pointed out that “the Financial Administration continues to activate oversight of budget implementation and improve spending efficiency through accurate digital systems, direct financial linkage with the Financial Supervision Bureau, and the activation of the unified treasury account.”
Saleh also pointed out that “the government relies on alternative financing tools such as issuing treasury transfers and domestic bonds, as they are less expensive than external debt and more politically secure, in addition to pushing towards maximizing partnerships with the private sector in infrastructure projects, especially in the areas of transportation and energy.” He explained that “the government is proceeding with expanding the electronic collection system and increasing non-oil revenues from taxes, customs, and service fees, in addition to stimulating direct investment through sovereign incentives and guarantees provided to vital sectors such as the pharmaceutical industry, petrochemicals, and renewable energy.” The financial advisor to the Prime Minister emphasized that “budget reform does not only mean reducing expenditures or increasing revenues, but rather redrawing the general financial philosophy to serve sustainable development, enhance social justice, and give the state greater capacity to confront crises and fluctuations in global energy markets.”
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