Iraq PM's financial adviser says borrowing law is temporary, not a budget substitute

BAGHDAD, Iraq — Iraq's prime minister's financial adviser, Mazhar Mohammed Salih, said the country's borrowing and grants law is a temporary arrangement and not a permanent alternative to the general budget. Speaking to the state news agency, Salih said the law is being applied to allow spending to continue until the budget is approved. Salih said that if the budget is delayed, the government will turn to a temporary financing mechanism to cover essential expenditures and meet financial obligations. He noted that volatility in oil prices and rising spending have increased the need for borrowing to close the gap and secure required funding. The adviser described the borrowing and grants law as an exceptional tool designed to keep state institutions functioning until constitutional and legal processes are completed and the general budget is adopted. No further details on the timing of the budget were immediately available.