Iraqi lawmaker says salaries remain ‘secure’ as oil prices fluctuate

BAGHDAD — A member of Iraq’s parliamentary finance committee said the current financial situation is stable and salary payments are secure, but expressed concern over delays in the federal budget process and the government’s unchanged oil price forecast despite falling global prices.

In 2023, Iraq enacted its first three-year federal budget covering 2023 to 2025, based on an oil price assumption of $70 per barrel and a daily export target of 3.5 million barrels. However, global oil prices have since declined, with Brent crude trading around $60–$65 in early 2025, raising concerns about revenue shortfalls. The budget projects a deficit of 64 trillion dinars ($48 billion) annually, consistent across the three years.

“The government has several options and the ability to overcome any crisis at the moment,” said committee member Hussein Mu’nis in an interview with the state-run Al-Sabah newspaper. “The current situation is not cause for concern, and the salary file will not face disruption.”

Concerns over potential salary shortfalls in Iraq have been fueled by declining oil prices and the government’s decision to withdraw over 3 trillion dinars from dormant tax trust funds to cover payroll obligations. Despite these concerns, authorities have repeatedly assured that salary payments for government employees are secure.

Mu’nis said the delay in sending budget tables from the government is a “negative indicator” that reflects weak responsiveness to global economic shifts, particularly the decline in oil prices. “Keeping the price per barrel at $70 in the budget is unrealistic and must be revised based on expert opinion,” he said.

In April 2025, Iraq exported an average of 3.365 million barrels of oil per day, generating approximately $6.67 billion in revenue. This marks a decrease from March’s export volume of about 3.42 million barrels per day.

He noted that the current budget deficit stands at 63 trillion dinars, calling it “a large figure that requires serious work by parliament to reduce it in line with available resources.” He added, “The finance committee is actively working to address the deficit and amend the tables to reflect current challenges.”

Mu’nis also pointed out that the budget tables will be a “real challenge” for parliament due to what he described as the fragility of Iraq’s economy and its reliance on a single resource—oil—which leaves the country exposed to global market fluctuations. He stressed that overcoming these issues will require “sound financial management and realistic planning that aligns with the current economic situation.”

Budget tables are detailed financial documents that outline the government’s planned expenditures and revenues. They provide a breakdown of allocations for various sectors, including salaries, infrastructure projects, and social services.