Iraqi economy enters "dark tunnel" and MPs are concerned about the delay in sending budget tables, 8 JAN

Iraqi economy enters "dark tunnel" and MPs are concerned about the delay in sending budget tables

Warnings are increasing that Iraq will face major economic difficulties during the current year and the coming years, for reasons most notably its reliance on oil as the sole source of the financial budget and the lack of alternatives, especially with the increase in population. 

Experts confirm that the failure to diversify the country's sources of income and invest oil revenues in providing job opportunities and producing goods and services threatens to spread unemployment among young people, while fluctuating oil prices threatens the country's economic and financial stability. 

In this regard, economic expert Nabil Al-Marsoumi warned today, Monday, of Iraq entering a dark and critical economic tunnel due to wrong policies, which affects the vulnerable and middle-income classes.  

Al-Marsoumi said in an interview with Al-Maalouma Agency, “Iraq has begun to enter a dark and critical tunnel due to wrong economic policies, failure to provide job opportunities, and resorting to appointments, and here lies the dilemma,” indicating that "When the state is late in paying salaries, the general economic movement and all components of the private sector and the fragile and middle classes will be affected."  

He added, "There is a lack of economic development and a development vision, and therefore things will continue as they are, and whenever oil prices decline, Iraq will find itself in the midst of great difficulties." He explained that "the increase in population requires raising public spending, while revenues are stagnant as a result of relying on oil as the sole resource for the budget and the failure to use its revenues to build a diversified economy that produces goods and services."  

He points out that "there is no short-term solution and the government may resort to deducting a percentage of the Central Bank's transfers and borrowing from domestic banks, and the real solution lies in providing new financial sources other than oil," noting that " Continuing things as they are now will lead to a major problem and unemployment among young people will increase in the coming years.” 

The 2025 budget has not yet been approved, while MPs confirm that the budget schedules have not been sent to the House of Representatives. 

MP Ahmed Al-Sharmani expressed his concern today, Monday, regarding the delay in sending the 2025 budget tables by the government to the House of Representatives, noting that the parliament is still not aware of the details of these tables until now.  

Al-Sharmani explained in a statement to / Al-Maalouma / agency, that “according to the Financial Management Law, the budget tables must be sent to the House of Representatives at the end of October of each year, and that delaying this is a legal violation, especially since this delay has been repeated annually for years,” explaining that “the current delay is another legal violation, as there is no specific date for sending the budget tables.” 

He points out that "there is a possibility that the government is linking the sending of these tables to amending the law proposed in Parliament, which will lead to an additional long delay in light of the ongoing disagreements over the proposal." 

He explained that “the House of Representatives is still not aware of the 2025 budget schedules yet, and there is no specific date for sending these schedules.” 

In contrast, the Prime Minister's financial advisor, Mazhar Muhammad Salih, confirms that the growth rates of the non-oil GDP will rise to an unprecedented level during 2024, while pointing out that the government program has succeeded in controlling financial diversification in the general budget and the national economy in general.  link