Iraqi lawmaker urges shift to program-based budgeting to ease fiscal crisis

BAGHDAD, Iraq — Former Iraqi lawmaker Mustafa al-Kardawi, a spokesman for the State of Law Movement, said transitioning to a program-based budget is the most realistic path to addressing Iraq's economic difficulties. Speaking on Monday, al-Kardawi said program-based budgeting differs fundamentally from traditional line-item budgets by setting long-term priorities and plans aimed at the efficient use of resources in the service sector. Al-Kardawi noted that the State of Law Movement had previously advocated for the approach in earlier parliamentary terms and said the government could succeed if it implemented the experience seriously. He said Iraq's ongoing fiscal crisis, which has persisted since 2024, is directly tied to overreliance on oil and a lack of economic diversification. The former lawmaker added that the state budget has been exposed to fluctuations in global crude oil prices, while the absence of effective plans to develop the private sector has limited alternative employment and economic growth. Al-Kardawi said the crisis can be resolved only by developing other vital sectors to support the national economy.