Iraqi Finance Ministry Prepares First Performance-Based Budget
At a Glance:
- Finance Minister Faleh al-Sari announced Iraq’s transition toward adopting a performance-based (program) budget.
- The expanded committee meeting featured MPs, regional officials, and virtual input from Iraqi financial experts abroad.
- Minister Sari confirmed that the draft budget law will be submitted to the Cabinet strictly on schedule.
- Discussions focused on evaluating draft stages, assessing implementation obstacles, and integrating parliamentary feedback.
Iraqi Finance Minister Faleh al-Sari chaired an expanded session of the budget preparation committee to advance Iraq’s first-ever performance-based budget. Attended by lawmakers, regional representatives, and international financial experts, the meeting focused on reviewing draft timelines and incorporating legislative feedback to modernize state financial planning.
Key Statements and Focus Area:
- Commitment to Budget Modernization:"Steps to approve Iraq's first performance-based budget are ongoing, and the draft law will be delivered to the Cabinet strictly on schedule." — Faleh al-Sari, Iraqi Finance Minister.
- Methodological Alignment:"Adopting a program and performance-based budget links resource allocation directly with actual state needs, government priorities, and measurable outcomes." — Ministry of Finance Statement.
Expanded Consultations and Expert Input
The committee session brought together key stakeholders, including members of the Parliamentary Finance Committee, delegates from the Ministry of Electricity, and representatives from Saladin and Diwaniyah governorates. To ensure global best practices were considered, Iraqi financial experts living abroad participated via video conference, offering insights alongside proposals submitted directly by attending Members of Parliament.
Assessment of Progress and Operational Obstacles
During the meeting, committee members evaluated the completed drafting phases and outlined the remaining technical steps required to finalize the new budget structure. Discussions focused heavily on identifying potential administrative and accounting hurdles facing the execution of a program-oriented budget, ensuring mechanisms are in place to transition smoothly away from traditional line-item budgeting.
FYI
Transitioning to a performance-based budget represents a major structural reform aimed at enhancing fiscal transparency, reducing resource waste, and prioritizing public expenditures in Iraq. By establishing measurable benchmarks and opening the preparation process to broad legislative and expert input, the Finance Ministry aims to ensure that future allocations align directly with tangible development goals.
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