Iraq’s budget execution slows sharply amid budget approval delays

The Finance Ministry’s budget execution data for the first four months of 2025 reveals a marked slowdown in government spending, with average total monthly expenditures falling by 25% compared to in 2024. The slowdown comes as parliament continues to await the submission of the 2025 budget tables from the executive branch, constraining disbursements, particularly in capital spending.

Between January and April this year, the government spent an average of 9.4 trillion IQD per month. This amounts to just 53% of the monthly average it was authorized to spend in 2024. In comparison, the government executed 71% of its allocated budget last year. The pullback reflects tighter fiscal controls in the absence of a new budget mandate, with ministries operating under significant restrictions on non-essential expenditures.