Iraq’s 16-Month Budget Crisis Leaves More Than 4,000 Projects on Hold

Iraq has been operating for 16 months on temporary financial arrangements because the federal budget has not been discussed, leaving new investment projects unable to start. With the end of the 2023-2025 three-year budget period, the government is working under monthly spending limits set by the 2019 Financial Management Law. More than 4,000 projects remain suspended across the country, according to Mesud Feridoon, a member of the Iraqi Parliament’s Salih Inşat and Environment Committee. Hospitals, schools, bridges and water network projects have remained unfinished for years. Experts say declining oil revenues have deepened the budget crisis and are calling for broader public-private partnership participation. They also say Iraq should consider alternative routes for oil exports. Prime Minister Ali Felah ez-Zeydi has said the government is preparing a new budget that reflects economic and fiscal reform priorities.