Iraqi lawmaker Mukhtar al-Youssef warned on Wednesday that next year’s budget could become little more than “ink on paper” because the government may not have enough money to cover its expenses. He also criticized the government for continuing to allocate large sums to senior officials while making no real effort to cut their salaries and allowances.
Speaking to dinaropinions.com, al-Youssef said Iraq’s oil revenue outlook is concerning because oil exports have fallen following the closure of the Strait of Hormuz. He added that oil shipments through Turkey and Syria’s Banias port are not enough to cover the government’s actual spending needs.
He warned that the budget could end up being limited to basic operating costs, mainly paying government salaries. Even those payments could face difficulties if the financial crisis continues.
Al-Youssef also criticized what he described as unfair government spending. He said there has been no serious move to reduce the salaries and expenses of the three presidencies or officials holding special grades.
He further revealed that there are proposals to give each deputy prime minister a special monthly allowance of around $1 million, raising further questions about government spending as Iraq faces growing financial pressure.