The repercussions of the delayed approval of budget schedules… Who bears responsibility?
The repercussions of the delayed approval of budget schedules… Who bears responsibility?
4-3-2025
Information/Report
Iraq continues to face delays in budget approval, a practice that has become more of the norm than the exception, negatively impacting the country’s economic and administrative situation.
The 2025 budget schedules are still circulating through the government corridors, between the Ministries of Finance and Planning, amid administrative complications and political influences that are delaying its submission to Parliament.
In this context, Parliamentary Finance Committee member Moeen Al-Kadhimi emphasized that the government should have submitted the tables on time, especially since the budget does not include any new provisions except for Article 12, Paragraph (c), which recalculates the cost of producing and transporting crude oil from the Kurdistan Region to $16 per barrel, after the amendment was voted on late last year.
For his part, Finance Committee member Mustafa Al-Karawi explained that the delay in submitting the schedules has disrupted the operational budget, resulting in delayed payments to employees, including bonuses, promotions, and certificate calculations, in addition to disrupting many government financial activities.
Al-Karawi told Al-Maalouma that “the government’s delay in submitting schedules after the end of the fiscal year constitutes a legal violation that negatively impacts the financial stability of government institutions and increases the complexity of implementing the budget on time.”
In an attempt to explain the reasons for this delay, economic analyst Basil Al-Obaidi identified four main factors hindering the submission of budget schedules:
1. Lack of a comprehensive economic vision: The Ministry of Finance lacks a clear plan based on the global economic landscape, especially in light of economic changes and international challenges.
2. Political influences and electoral bidding: As the election date approaches, some parties attempt to exploit financial tables to achieve political gains, leading to delays.
3. Cabinet pressure: The government seeks to ensure that the budget is not subject to political bickering, as it wants to pass it in its original form without any substantive amendments.
4. Critical financial situation: Iraq is facing a growing financial crisis, prompting the government to seek alternative solutions before submitting the budget to parliament.
Despite the delays and complications, Al-Obaidi confirms that the budget will be put to a vote after the Eid holiday, as the government and parliament seek to expedite its approval to avoid further delays and financial turmoil.
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