Debate revived over oil windfalls and services under Kadhimi

BAGHDAD, Iraq — Debate over public finance management during Mustafa al-Kadhimi’s term has resurfaced, with critics again questioning how state revenue was handled when oil prices rose and large sums flowed into the treasury. The text says the Kadhimi government’s decision to change the dinar’s exchange rate against the dollar at the end of 2020 was seen by officials as necessary to reduce the budget deficit. Opponents said the move pushed up prices for basic goods and increased the cost of living. It adds that, even as oil revenue increased in later years, critics say the money did not produce a clear improvement in infrastructure or basic services. They also point to disruptions in investment projects and initiatives that were announced but never carried out. Supporters of Kadhimi’s period argue that the government operated under complicated political, economic and security conditions.