The economic expert Saleh Al-Khafaji revealed today, Sunday, the financial implications and governing expenses resulting from the decision to establish new ministries in the government of Ali Al-Zaydi, pointing out that this step raises serious questions in light of the current economic conditions the country is experiencing.
Al-Khafaji said in a press statement reviewed by the "Video News Agency" that "in light of the acute financial crisis that Iraq is facing, the decision to establish ministries of artificial intelligence, tourism, and others has sparked much debate and questions about their purpose and actual benefit," emphasizing that "the government should have opted for an austerity approach and controlled operational expenses as much as possible, especially since oil revenues have reached a critical stage that is no longer sufficient to cover salaries, which explains the delay in their payment monthly."
He added that "tensions and crises in the Middle East remain ongoing and open to all possibilities, making Iraq's financial situation difficult and critical," noting that "economic management over the past years has been flawed due to a direct reliance of up to 85% on oil revenues to secure salaries and other governing expenses."
He pointed out that "the decision to establish ministries carries political motivations, but it is currently impossible to determine the exact amount of money that will be allocated to them except through the allocation table of the 2027 budget," indicating that "these ministries will cost the treasury additional money, but it will not be very substantial at the beginning since they are newly established, and their staffing structure will largely depend on transferring employees from other government institutions and agencies."
The economic expert concluded by stating that "spending any funds on new ministerial formations under the current financial circumstances places the government in front of legitimate questions from the public and economists," stressing that "one cannot predict the total cost to the public treasury except after disclosing the amounts allocated to them in the upcoming budget."