Iraqi politicians fail to agree next year’s budget

▶ Officials say draft budget does not give enough money to provide vital services

For the third time in a row, Iraqi politicians failed to approve a draft budget bill for 2019 because they say it does not provide enough funds to deliver effective services.

This comes a week after some officials said they objected to the draft budget because it did not allocate funds to rebuild areas liberated from ISIS.

Prime Minister Adel Abdul Mahdi approved the draft budget in October and it now awaits parliament’s approval. The $111.9 billion (Dh410.9bn) budget would increase spending to $24bn and leave a deficit of $22.6bn.

Parliament convened on Monday evening to discuss issues related to the draft, but MPs – including Finance Minister Fuad Hussein – said the bill also failed to provide enough resources to create jobs or provide public services.

The 2003 US invasion, the rise of ISIS in 2014 and the ensuing battles against the militant group battered the country’s infrastructure, leading to dwindling state provision of water and electricity. This led to regular demonstrations, especially during Iraq’s hot summer, with citizens angry about the lack of basic services.

Iraq’s instability also contributed to high unemployment. According to the UN Development Programme, employment rates across Iraq stand at 11 per cent.

Yesterday, Mr Hussein said he would work with parliament to resolve all issues related to the draft bill.

He said he would try to iron out all issues before another deadline next Monday but insisted his ministry is still facing significant problems.

The minister blamed the budget’s shortcomings on the previous Iraqi government.

“The previous administration that prepared the budget failed to address Mr Abdul Mahdi’s government programme,” Mr Hussein said, referring to a four-year government plan that focuses on some of Iraq’s most pressing issues – corruption, reconstruction, economic development and a crippling water crisis.

Janghis Awakaly, a Kurdish representative, also blamed the budget’s pitfalls on the previous government, which he claimed submitted the draft just hours before the new administration was formed.

“This was done deliberately to undermine the new Cabinet,” he told The National.

Kurdish politicians previously said they rejected the 2019 draft budget because their funding share was cut from 17 per cent this year to 12.67 per cent for next year. Mr Awakaly said that a revised budget should help to enhance trust between Baghdad’s central government and the country’s different regions.

Previous budget allocations in Iraq have been skewed, with Sunni and Kurdish regions getting less than districts dominated by the country’s Shiite majority.

On Sunday, Iraq’s parliament set up a committee to review the draft.

“The committee will be headed by Mr Hussein who will work alongside the acting deputy finance minister, head of provincial planning and development council, economic experts and relevant parties to revise the legislation,” parliament said.

Previous budgets in Iraq were skewed, with Sunni and Kurdish regions getting less than Shiite-majority areas