At a Glance:

• Finance Minister Faleh Sari reviewed preparation for the upcoming draft federal budget under a program and performance model.
• Sari instructed the Budget Department to finalize draft allocations within specified deadlines and realistic fiscal estimates.
• The transition moves Iraq away from traditional line-item budgeting to link resources directly to strategic outcomes.
• The ministry aims to maximize spending efficiency amid broader fiscal pressures affecting the country.

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Iraqi Minister of Finance Faleh Sari visited the Ministry of Finance's Budget Department to inspect ongoing work on the country's upcoming federal draft budget. During the review, Sari instructed officials to adhere strictly to completion schedules while implementing a program and performance budgeting framework designed to overhaul public expenditure management.

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Key Statements and Focus Area:

• Transitioning Fiscal Strategy:"The Ministry is moving toward a gradual transition from line-item budgeting to program and performance budgeting. This approach links resource allocation directly to objectives, programs, and outcomes, thereby enhancing the efficiency of public expenditure management." — Faleh Sari, Iraqi Minister of Finance.
• Methodological Discipline:"Completing the draft budget within specified deadlines requires finalizing its requirements according to a precise methodology and realistic estimates to ensure it serves targeted national results." — Ministry of Finance press release.

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Shift to Program and Performance Methodology

The Ministry of Finance is phasing out the traditional line-item framework, which historically focused on administrative inputs, in favor of a system that allocates funds based on measurable project deliverables. The new model ties operational and investment outlays directly to sectoral goals, providing clearer oversight over public spending efficiency.

Enforcing Preparation Deadlines

Minister Sari urged department leads to maintain momentum to meet structural deadlines for the upcoming budget cycle. He emphasized that precise revenue and cost estimations are critical to making the new budgeting model functional and sustainable for state institutions.

FYI

The adoption of a program and performance budget reflects an effort to modernize public financial management in Iraq. Amid volatile energy revenues and structural fiscal pressures, linking state outlays to performance benchmarks allows authorities to prioritize essential infrastructure, improve transparency, and restrict wasteful administrative spending across government ministries.

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