Iraqi governorates face funding crisis amid delayed budget allocations

Shafaq News/ Member of the Parliamentary Finance Committee, Ikhlas Al-Dulaimi, highlighted the pressing issues confronting Iraqi governorates due to the delayed release of financial funding from the 2023 budget.

Speaking to Shafaq News Agency, Al-Dulaimi expressed deep concerns over the challenges faced by the governorates. She stated that despite the budget being prepared with 197 trillion dinars, the anticipated positive impact on service provision in the governorates has not materialized.

"As the tenth month of the year progresses, there has been a failure to allocate any funding to the governorates, causing significant problems." She said.

Al-Dulaimi emphasized that the funding rate has not exceeded 2% thus far. The allocations have been minimal, leading to significant complexities for the governorates. Projects are often stalled, with even minor changes requiring projects to be returned to the Ministry of Planning and then to the governorate.

"This lack of coordination between the Ministries of Finance and Planning has hindered project financing for the governorates."

She further highlighted the paradox where essential projects, such as water desalination, included in the general budget, have not been funded despite being in the year's final months.

On June 12, the Iraqi Parliament approved the financial budget for the three years (2023-2024-2025), totaling 198.9 trillion Iraqi dinars ($153 billion) each year.

The budget is based on an oil price of $70 per barrel and projects oil exports of 3.5 million barrels per day.

The budget includes a significant increase in spending on public sector salaries, pensions, and social welfare programs. It also funds infrastructure projects, such as roads, bridges, and power plants.

The government has said that the budget aims to stimulate economic growth and create jobs. However, some critics have warned that the budget is too large and could lead to inflation and a budget deficit.