Iraq opens the file on public funds: striking at privileges and removing zeros
Amid the financial and economic pressures facing the Iraqi state, the files of public funds, privileges, double salaries, and reforming the monetary system are returning to the forefront of discussion within the House of Representatives, with a set of proposals aimed at rearranging government spending, tightening control over the wealth of officials, and strengthening the position of the Iraqi dinar.
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The proposals put forward do not stop at amending one law, but open a wider discussion about the form of the state’s financial management, the size of spending on officials, and the extent to which regulatory institutions are able to uncover illicit funds, leading up to a controversial proposal related to removing zeros from the Iraqi currency.
At the forefront of the files is the proposal to amend the Integrity and Illicit Gains Authority Law, with the aim of tightening the procedures for disclosing financial assets and holding accountable those taxpayers who show a large and unjustified increase in their funds.
This issue is of particular importance in a country that has been suffering for years from the challenges of corruption and abuse of power, since combating illicit enrichment does not depend solely on penalties after the violation has occurred, but requires an effective system to monitor the growth of wealth and link financial declarations to banking, real estate and commercial information.
The proposals also aim to tighten procedures against those who refuse to submit financial disclosure statements, with violators being referred to the judiciary if illicit gains are proven.
The most politically and popularly sensitive issue is related to double salaries and financial privileges, where it was proposed to prevent one person from receiving more than one salary under any title, in addition to reorganizing a set of benefits that officials and employees in state institutions receive.
The idea here is based on a simple principle: Citizens cannot be asked to rationalize their spending while the doors of government privileges remain open without clear limits.
In the same context, one of the proposals includes setting a fixed monthly salary for a member of the House of Representatives worth five million dinars, while regulating allowances and privileges, reducing the number of employees, security personnel, escorts and advisors, in addition to controlling the use of government cars and aircraft and subjecting spending to the control of the competent authorities.
These measures, if they are turned into effective legislation and actually implemented, could provide significant sums for the treasury, but at the same time they will face a difficult political test, because reforming privileges often clashes with the interests of those who benefit from them.
In a parallel track, another proposal emerged concerning the reform of the financial and monetary system, which includes combating money laundering, restricting the movement of funds within official banking channels, recovering smuggled funds, and bringing informal capital into the economic cycle.
But the most controversial proposal is to remove zeros from the Iraqi dinar, or what is known as renaming the currency, as part of a broader strategy to reform the monetary system.
Here, a distinction must be made between removing zeros and increasing the real value of the currency. Removing three zeros, for example, does not automatically mean that citizens have become wealthier or that the purchasing power of the dinar has increased; the success of this step depends on economic stability, controlling inflation, managing the money supply, the strength of the banking system, and citizens' confidence in the currency.
Therefore, any project to rename the dinar needs careful study and a clear transition mechanism that ensures there is no confusion in prices, contracts, salaries, savings, and commercial transactions.
The Iraqi problem is not just in the form of the currency, but in an entire economic system that needs simultaneous reforms that include banks, non-oil revenues, government spending, tax evasion, money laundering, the exchange market, and the monetary economy.
Hence, removing zeros, if done alone, may be a mere arithmetic change, whereas if it comes as part of an integrated economic program, it may become part of a broader monetary reform process.
Ultimately, Iraq has an opportunity to reopen the public finance file from a different angle: reducing privileges, combating illicit gains, controlling double salaries, recovering smuggled funds, and reforming the monetary system.
But the success of these ideas will not be measured by the number of proposals that reach parliament, but rather by the state's ability to turn them into fair laws that apply to everyone without exception.
True financial reform does not begin with simply removing three zeros, nor with reducing an official's salary, but rather with building a state that knows where its money goes, who receives it, and how to protect it from waste and corruption.
The real battle is not with the zeros on the currency, but with the zeros in the accounts of oversight and accountability.
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The cabinet is suspended and the government program is pending... Bloc disputes are hindering a government without ministers.
The crisis surrounding the completion of the cabinet and the appointment of ministers to fill
vacant portfolios remains unresolved, amidst ongoing political disagreements between blocs and forces regarding the distribution of ministerial positions. This raises questions about the government's ability to implement its program and fulfill its service and economic obligations.
This comes as the government's three-year program has reached the Council of Representatives. MP Mohammed Karim al-Baldawi, spokesperson for the Sadiqun parliamentary bloc, confirmed that the program has been submitted to the Speaker's office, which has referred it to the relevant parliamentary committee for review and feedback before a vote.
In a statement to Al-Maalomah, al-Baldawi said, "The government program for the next three years represents the executive vision for the coming phase, especially as the country is experiencing financial and economic crises that require genuine and realistic reforms to overcome them." He added, "The Council of Representatives is studying the program comprehensively, as its approval will activate the work of parliamentary committees to monitor the implementation of its provisions according to the established timelines."
He added that “the Parliament’s leadership has referred the program to the relevant committee for review and to inform the members and the Speaker of the Council,” noting that “setting a date for the final vote is the responsibility of the Speaker of the House of Representatives, and it is expected that it will not take long to be placed on the agenda as soon as possible.”
Meanwhile, the crisis surrounding the vacant ministerial portfolios appears more complex, with no clear indications of an imminent political agreement on the candidates to fill them. This is impacting the performance of the executive branch and its ability to manage files that require fully empowered ministries.
In this context, Member of Parliament, Taqi Nasser, confirmed the absence of any positive signs or clear political horizon for resolving the issue of completing the cabinet, attributing this to the continued disagreements among political forces regarding the vacant portfolios.
Nasser told Al-Maalomah, “The continued postponement of resolving this vital issue constitutes a major obstacle and a clear disruption to executive work, further hindering the implementation of the government program intended to be put into practice.”
He added that “keeping the vacant ministries run by acting ministers or without a final decision directly exacerbates the financial and economic crises the country is experiencing, in addition to its negative impact on serving citizens' interests and stalled service projects.” He explained that “the House of Representatives cannot fully exercise its oversight role with an incomplete cabinet.”
The timing of the cabinet dispute, coinciding with the anticipation of the government program's approval, reveals a fundamental problem: the difficulty of translating government pledges and plans into actionable measures without a complete cabinet, especially in ministries directly related to economic and service-related matters.
Observers believe that the continued ministerial vacancies could weaken oversight and accountability mechanisms within the House of Representatives, particularly since parliamentary committees require ministers with full authority to discuss their ministries' plans and question them about progress, spending, and the implementation of the government program.
Furthermore, the delay in voting on ministers leaves the management of several important files hostage to political agreements, at a time when the country faces challenges related to the financial situation, the implementation of service projects, and improving the performance of state institutions.
While parliamentary sources indicate the possibility of including the government program on the council's agenda after the relevant committee finalizes its observations, the timing of finalizing the cabinet remains contingent on the progress of understandings between political blocs. This makes completing the government one of the most prominent issues awaiting resolution in the coming period.
MP Taqi Nasser called on all political blocs and forces to "adopt the language of urgent dialogue, prioritize the supreme national interest, and demonstrate a sense of legal and moral responsibility to the Iraqi people to overcome this crisis as soon as possible." He warned that continued disagreements would leave executive and service-related matters vulnerable to obstruction.
Thus, the parliament now faces two parallel tracks: first, studying and approving the government program and activating oversight mechanisms for its implementation; and second, resolving the issue of ministers and filling vacant portfolios. The completion of both tracks is a prerequisite for the government to move from the stage of political consensus to the stage of actual implementation of announced plans and commitments.
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