A heated debate has erupted among Iraqi MPs, just days after President Abdul Latif Jamal Rashid ratified the 2024 Federal Financial Budget Law.

Lawmakers have flagged discrepancies in the budget, claiming that the version presented for presidential ratification was not the same as the one passed by Parliament. Allegations of manipulation within the budget tables have sparked significant concerns.

In early June 2024, Parliament held its 27th session, attended by 199 members, to vote on the revised Federal General Budget Law No. 13 of 2024 and its associated annexes. This session, guided by Article 59(2) of the Constitution and Article 77(2) of the Federal General Budget Law No. 13 of 2023, along with Article 4(2) of the amended Financial Management Law No. 6 of 2019, resulted in the approval of the 2024 budget tables, annexes, and deficit financing plans.

Furthermore, Parliament granted the Council of Ministers the authority to reallocate 2 trillion dinars (US$1.5 billion) from the ministries' investment budget to regional development funds for provinces not organized into regions. These funds are to be distributed based on population size and poverty levels.

The controversy underscores ongoing issues of transparency and integrity in Iraq's budgetary processes, raising questions about the fidelity of legislative procedures and executive approvals.

Parliament to reassess budget tables

In an exclusive statement to The New Region, Member of Parliament Aref Al-Hamami announced that Parliament will investigate the allegations of budget manipulation once sessions resume.

Al-Hamami emphasized that the version of the budget approved by Parliament is the one that must be enacted, warning that legal action will be taken against anyone found guilty of tampering with it.

As a member of the legal committee, Al-Hamami explained that any appeals against the budget would prompt a review. He also noted that the upcoming parliamentary session would focus on the deficit details and specific figures for the 2024 general financial budget.

On June 27, 2024, President Abdul Latif Jamal Rashid ratified several laws, including the 2024 budget. According to the Presidential Media Office, the ratified bills include the 2024 Federal General Budget Law tables, the first amendment to the Anti-Prostitution and Homosexuality Law, the extension of the Independent High Electoral Commission's mandate, and the first amendment to the law regulating the rental of agricultural land and granting management rights to agricultural and veterinary graduates.

The statement further mentioned that these laws have been sent for publication in the Iraqi Official Gazette to become effective.

Parliamentary probe into budget manipulation allegations

In an exclusive interview with The New Region, Moein Al-Kadhimi, a member of the Parliamentary Finance Committee, disclosed that the committee has meticulously reviewed the 2024 budget tables. This review included granting the Prime Minister the authority to reallocate 2 trillion dinars for regional development across various provinces and adjusting some figures before forwarding the budget to the Council of Ministers. 

Al-Kadhimi clarified that these amendments were made within the Parliament before being submitted to the government. He further explained that the Council of Ministers had returned the budget to Parliament for corrections and to eliminate unauthorized additions.

Al-Kadhimi underscored the committee's commitment to investigating those responsible for tampering with the budget, demanding accountability for those attempting to manipulate financial figures, as such actions directly affect the populace's well-being.

Budget faces potential hurdles

In an interview with The New Region, economist Nabil Jabbar Al-Ali said that objections within Parliament regarding a similar issue in the 2023 budget have fueled the current controversy over the 2024 budget. Al-Ali pointed out that while the government is required to implement the budget approved by Parliament and ratified by the President, any member of Parliament retains the right to appeal the budget tables for further review.

The triennial budget for 2023, 2024, and 2025, the largest in Iraq's history, was passed in June 2023 following extensive parliamentary debates. With an annual value of approximately US$153 billion, the budget foresees a substantial financial deficit of around $48 billion per year, more than double the deficit recorded in the 2021 budget.