NADER FROM MID EAST: Iraq budget. I think we’ll reach at the end of this week.Iqd, 11 MARCH

 NADER FROM MID EAST: Iraq budget. I think we’ll reach at the end of this week.Iqd

Highlights

Summary

In a recent update from Iraq, Mazhar Muhammad Sali, the economic affairs advisor to the Iraqi Prime Minister, announced a significant development regarding the 2025 federal budget.

 He confirmed that there is a consensus between the parliamentary finance committee, the council of ministers, and the Ministry of Finance concerning the budget schedules. This agreement is expected to facilitate the submission of the budget to the parliament before the conclusion of Ramadan, which is projected to occur at the end of March. 

According to Article 77/2nd of the 2023 federal budget law, the Ministry of Finance is mandated to submit annual budget schedules with amendments to both operating and investment expenses. Following discussions and voting within the council of ministers, these schedules will then be forwarded to the House of Representatives for approval.

 Additionally, a source from the Ministry of Finance indicated that the delay in submitting the federal budget tables was linked to amendments made to Article 12 of the budget law—an adjustment aimed at resolving disputes between the Kurdistan Region and the federal government regarding oil extraction costs. The Iraqi parliament previously voted to amend Article 12, which is pivotal for the ongoing financial negotiations.

• 📅 The 2025 budget is expected to be presented to the Iraqi parliament before Ramadan ends.
• 🤝 An agreement exists among key government bodies regarding budget schedules.
• 📜 Article 77/2nd of the 2023 budget law mandates annual submissions by the Ministry of Finance.
• ⚖️ Recent amendments to Article 12 of the budget law address disputes between the Kurdistan Region and the federal government.
• 🏛️ The Iraqi Council of Representatives is set to vote on the amended budget law.
• ⏳ Delays in budget submission are attributed to ongoing negotiations and amendments.
• 💰 The resolution of budget disputes is critical for the stability of the Iraqi economy.

Key Insights

• 🔍 Government Collaboration is Essential: The coordinated efforts between the parliamentary finance committee, the council of ministers, and the Ministry of Finance underscore the importance of collaboration in governance. Such cooperation is critical for timely budgetary processes, which are essential for economic stability and growth. The alignment of these bodies suggests that despite political challenges, there is a commitment to fiscal responsibility and planning.

• 📆 Impact of Ramadan on Budget Processes: The timing of the budget submission—before the end of Ramadan—highlights the cultural considerations that can impact governmental operations. Ramadan is a significant period in Iraq, and aligning budget discussions with this timeframe could reflect an understanding of the public’s focus on social and religious activities, thus potentially ensuring a smoother legislative process.

• 🏗️ Amendments to Operating and Investment Expenses: Article 77/2nd emphasizes the need for flexibility in budgeting, allowing the Ministry of Finance to adjust operating and investment expenses. This provision enables the government to respond to economic changes and prioritize funding based on current needs, which is particularly crucial in a fluctuating economic environment.

• 🌍 Resolution of Regional Disputes is Key: The amendment of Article 12 is a significant move towards resolving ongoing disputes between the Kurdistan Region and the federal government regarding oil extraction costs. This resolution is essential not only for political stability but also for ensuring that both parties can benefit from oil revenues, which are vital for Iraq’s overall economic health.

• 📊 The Role of Parliamentary Voting : The process of voting on the amended budget law by the Iraqi Council of Representatives is a critical step in the budgetary process. It demonstrates the democratic principles at play within the Iraqi political system, and the outcome of this vote will have substantial implications for the country’s economic direction.

• ⚠️ Delays Signal Underlying Issues: The delays in sending the federal budget tables highlight potential underlying issues within the government, such as disagreements over budget allocations or the need for further negotiations. Understanding the causes of these delays is essential for stakeholders to anticipate and mitigate potential risks to the budget process.

• 💡 Economic Implications of the Budget: The federal budget serves as a blueprint for economic strategy and priorities in Iraq. As such, the upcoming 2025 budget will have lasting implications for public services, infrastructure investment, and overall economic development. Stakeholders should closely monitor the discussions and decisions surrounding this budget, as they will shape the economic landscape for years to come.

In conclusion, the developments surrounding the 2025 budget in Iraq reflect a complex interplay of governance, cultural considerations, and economic necessities. The cooperation among key governmental entities signals a proactive approach to fiscal management,

 while the amendments to contentious budget articles highlight the ongoing challenges within the political landscape. As the parliament prepares to vote on the budget, the implications for Iraq’s economy and governance will be closely observed by both domestic and international stakeholders.