2025 Budget Developments: Insights from Economic Experts
Latest Updates on Iraq’s Financial Landscape
On March 15, 2025, financial and economic expert Haider Al-Sheikh provided an update regarding the preparation of Iraq’s budget for the year 2025, indicating that the Ministry of Finance is experiencing delays in finalizing essential documents.
According to Al-Sheikh, the Ministry has not yet completed the necessary tables for the budget, which will subsequently hinder its timely submission to the Council of Ministers and, by extension, delay its review and vote in the House of Representatives. There is speculation that the budget may be transmitted to the government before the conclusion of Ramadan, allowing it to reach Parliament post-Eid al-Fitr.
Key Budget Figures
Al-Sheikh elaborated that the overall budget for 2025 is projected to exceed 200 trillion dinars. Notably, actual expenditures are anticipated to reach approximately 150 trillion dinars, reflecting a financial deficit amounting to 25% of the total budget.
Supporting these observations, Mazhar Mohamed Saleh, the Financial Adviser to the Prime Minister, announced last Thursday that comprehensive budget tables are expected to be sent to the Council of Representatives in the near future. Saleh emphasized that the total budget aligns with figures cited by Al-Sheikh, noting that roughly two-thirds of this budget will be allocated to salaries for employees, pensioners, social welfare recipients, and operational wages.
Deficit and Financing Considerations
Saleh outlined the budget’s projected virtual deficit, which stands at 64 trillion dinars. The financing of this deficit is contingent upon maintaining a stable oil price above $70 per barrel and sustaining export levels at approximately 3.4 million barrels per day. Should either of these conditions change unfavorably, the government plans to seek funding from internal sources.
| Budget Component | Amount (in Trillions of Dinars) |
|---|---|
| Total Budget | 200 |
| Actual Expenses | 150 |
| Financial Deficit | 50 |
| Allocated for Salaries & Wages | 133.33 (approx.) |
| Virtual Deficit | 64 |
In conclusion, as the fiscal landscape evolves, the Iraqi government faces significant challenges in balancing its budgetary commitments against economic realities. Stakeholders will be closely monitoring further developments as the budget progresses through the legislative process.
