Latest Finance Ministry figures show drop in capital spending

The latest figures from the Finance Ministry indicate a significant dip in government capital spending in January, alongside a slight decline in operational expenditure compared to last year's average.

According to the Finance Ministry's data released this week, the government disbursed a total of 8.8 trillion IQD in January. This contrasts with a monthly average expenditure of 11.8 trillion IQD in 2023, although during the period between September and November 2023, the government averaged around 15 trillion IQD in monthly expenditures, which surged to 33 trillion IQD in December.

Operational spending fell to 8.1 trillion IQD in January, marking an 18% decrease from last year's average. This decline can be attributed, in part, to the absence of spending on food rations, and a notable reduction in funds allocated to grants, subsidies, and debt servicing. However, expenditures on salaries remained nearly constant at 4 trillion IQD, while the pensions payroll witnessed a slight rise to nearly 1.3 trillion IQD.