Economic researcher Diaa Abdul Karim warns that Iraq could face serious financial problems if the country enters the new year without an approved budget.
Speaking to dinaropinions.com, he said, “The government had prepared a three-year budget, but it ends this year. The new budget should have been ready and approved before the elections so we don’t walk into a dark tunnel.”
Abdul Karim explained that going into the new year without a budget means the country will be forced to spend using the 1/12 system, which only allows monthly spending based on last year’s numbers. Even if a new government forms quickly, he believes it will still take at least six months before a new budget is approved because the new ministers and officials will need time to settle into their roles.
He warned that delaying the budget will push Iraq into a “financial spiral,” especially with many active projects across different sectors. Without new funding, he said, these projects will be stopped — and many other services that depend on government spending will also be affected.
