Almost five months after taking office, Iraqi Prime Minister Muhammad Shia’ Al-Sudani in March this year submitted a draft budget law to the parliament. The move was imperative as no new budget was passed in 2022, with the political crisis following the Oct. 2021 parliamentary elections delaying government formation for a year. Sudani’s bill has stood out not merely given its size—the biggest in the country’s history—but also because it is a three-year plan covering 2023-25.

Greater spending, greater planning?

In a Mar. 13 statement, Sudani said his government will spend 197.8T IQD (153B USD) per year until 2025. He added that the Financial Management Law No. 6 of 2019 enabled this unusual multi-year approach. Speaking to Amwaj.media, an economic advisor to the Iraqi government, Mazhar Muhammad Salih, asserted that the presenting of a three-year budget is specifically designed to help with long-term planning.

Historically, Iraqi budgets have covered just one year, but the finance and planning ministries can use the law to make amendments to the budget in the coming years, with the approval of the parliament. In this way, they can account for changes in the price of oil or other developments. The latter is vital as...