Iraq’s government will continue operating under a one-twelfth spending mechanism until the 2026 federal budget law is approved, the prime minister’s financial adviser said, noting that monthly salary and welfare obligations amount to roughly eight trillion Iraqi dinars.

Mazhar Mohammed Salih, financial advisor to Prime Minister Mohammed Shia al-Sudani, said government financial policy has been implemented since January in line with amendments to the Federal Financial Management Law No. 6 of 2019, applying one-twelfth of the previous year’s expenditures.

Speaking to the Iraqi News Agency, Salih explained that the mechanism allows the state to continue meeting essential financial commitments while lawmakers finalize the budget.

Under the law, he said, the Ministry of Finance is authorized to take necessary financial measures if budget approval is delayed or if liquidity constraints arise, ensuring uninterrupted funding for priority expenditures.

“These priorities include the payment of salaries to public-sector employees, pensions, and social welfare benefits, in addition to allocations for financial oversight,” Saleh said, adding that such obligations total approximately eight trillion dinars per month.

Iraq has frequently relied on one-twelfth spending rules in recent years amid political delays in passing annual budgets, allowing the government to maintain basic operations while avoiding a fiscal shutdown.