The budget controversy surrounding the fiscal year 2024 continues, as the disbursement of funds has yet to commence. Recently, the Federal Supreme Court addressed an appeal concerning alleged discrepancies in the budget schedules, citing a lack of personal interest in the matter.
In July 2024, the General Secretariat of the Council of Ministers submitted a formal inquiry to the House of Representatives regarding potential manipulations in the budget schedules. This inquiry highlighted fundamental inconsistencies between the printed tables attached to the parliamentary document and the official copy provided by the Council of Ministers, which contradicted the parliamentary decision.
Representative Mohamed Al-Khafaji confirmed via social media that the Federal Supreme Court responded to the appeal regarding the discrepancies in the budget schedules, asserting that there was insufficient personal interest to pursue the case further.
On February 3, the House of Representatives approved the draft law for the first amendment to the Federal Public Budget Law of the Republic of Iraq for the financial years 2023-2025, identified as Law No. 13 of 2023.
The proposed budget for 2024 totals 197 trillion and 828 billion Iraqi dinars (approximately 152.2 billion USD), accompanying a deficit of 63 trillion dinars (48.3 billion USD).
It is noteworthy that the 2024 budget has yet to be implemented. Concerns have been raised by economic experts regarding the erosion of public trust in the government’s financial management capabilities, which could lead to broader economic and political instability.
Last year, Representative Khazal Khashan filed a complaint with the Federal Court over the approval by Parliament of differing tables within the 2024 budget, deviating from those initially ratified by the Council.
Economist Nawar Al-Saadi previously remarked that the delay in issuing implementation instructions significantly hampers governmental performance and the national economy. Such delays create challenges for government institutions in executing projects and programs, consequently disrupting development plans and postponing essential projects in infrastructure, healthcare, and education.
Al-Saadi emphasized that these delays undermine public confidence in the government’s ability to manage financial issues efficiently, potentially leading to social and political unrest—especially significant given that the current government, led by Prime Minister Mohammed Shia Sudani, brands itself as a “Service Government.”
The three-year budget encompasses provisions for external borrowing, continuing previous agreements while also initiating new borrowing from international institutions and other governments, with some borrowings projected to exceed 3 trillion USD.
It is critical to highlight that this three-year budget, influenced by the increase in salary expenditures due to recent appointments, has led to a significant reduction in the investment budget. Specialists have noted that this scenario will necessitate further state borrowing.