The government confirms its commitment to fulfilling its financial obligations.
The government confirms its commitment to fulfilling its financial obligations.
07/21/2025
A government advisor confirmed the state’s commitment to fulfilling its financial pledges, despite the challenges represented by the delay in implementing the article related to the oil agreement with the Kurdistan Region, as well as the repercussions of wars and fluctuations in oil prices. Meanwhile, the House of Representatives acknowledged the existence of a financial deficit that caused a delay in voting on the 2025 budget schedules, despite the increase in non-oil revenues, including customs, which achieved more than two trillion dinars.
The Prime Minister’s Financial Advisor, Dr. Mazhar Mohammed Salih, stressed to Al-Sabah that the government has succeeded in fulfilling its financial obligations despite the challenges that accompanied the implementation of some provisions of the three-year federal general budget, especially those related to Article (12) concerning the Kurdistan Region. This article stipulates that the region shall deliver (450) thousand barrels of oil per day, in addition to non-oil revenues, in exchange for receiving a percentage of (12.67%) of the total budget after excluding sovereign expenditures.
Saleh explained that fluctuations in global oil prices affected the budget, but the state continued to fulfill its commitments by stabilizing contracts, expanding the social safety net, and proceeding with service projects.
He pointed out that the budget remains subject to the provisions of the Financial Management Law, which has demonstrated remarkable flexibility in facing three major crises in the past: the financial-security crisis, the financial-health crisis (the coronavirus pandemic), and the repercussions of the current geopolitical wars.
He also indicated that the financial administration was able to maintain a balance between revenue and expenditure flows, even in light of the delay in approving part of the budget, thanks to the role of foreign exchange reserves and well-thought-out operational policies resulting from coordination between monetary and fiscal policies.
For its part, the Parliamentary Finance Committee, headed by MP Atwan Al-Atwani, hosted Finance Minister Taif Sami yesterday, Sunday, to discuss the government’s program, mechanisms for implementing the three-year general budget, and its schedules.
During the meeting, Al-Atwani emphasized the importance of conducting a comprehensive review of the budget to ensure accurate handling of financial data. He emphasized the need to move toward enhancing self-sufficiency while reducing reliance on oil revenues as the primary source.
The committee also stressed the importance of digital transformation in financial transactions, due to its role in maximizing non-oil revenues, especially in the tax file and customs automation, noting that customs revenues exceeded (2) trillion dinars.
For her part, the Minister explained that the Ministry has achieved advanced steps in reforming and restructuring government banks and implementing a comprehensive banking system, in addition to expanding electronic payment services and the POS system, under the supervision of the Central Bank.
alsabaah.iq
