PHOTO
Iraq may be unable to exploit its oil windfall for projects and infrastructure spending, and job creation due to legal hurdles, the financial advisor to the Iraqi government said.
Mudher Muhammad Saleh told Zawya Projects that Iraq’s financial reserves are growing but the caretaker government headed by Prime Minister Mustafa Al Kadhimi has no authority to spend since the Federal Supreme Court has limited its powers to daily affairs.
The Federal Supreme Court ruled last week that the current government has no authority to create legislation to present to parliament, or strike agreements that could influence Iraq's future, putting a question mark on public sector investment plans, according to 15 May dated report by Abu Dhabi-based English language newspaper The National.
Saleh said the current government cannot present the budget law even if the Parliament requests it because of the court's decision.
He said the only alternative is applying Financial Management Law No. 6 of 2019 and spending on a monthly basis (lmited to twelfth of last year's budget amount) until the 2022 budget law is passed.
“We have financial surplus, but there is a restriction in disbursement and financial transactions,” said Saleh.
He said that the court’s decision also prevents the Parliament from discussing any bill unless it is by a government formed from the 10 October 2021 parliamentary election.
Saleh noted that the caretaker government intends to support Iraq’s food security by exercising the options available through Financial Management Law and disbursing 12/1 of the actual current expenses including salaries until the Federal Budget Law for the year 2022 is legislated.
(Reporting by Majda Muhsen; Editing by Anoop Menon)
