Iraq's monthly wage bill hits 7.7 trillion dinars, finance minister says

Summary

• Iraq must pay 7.7 trillion dinars in salaries every month, Finance Minister Falih Sari told parliament.
• Non-oil revenue rises to 19% of the coming budget, up from 11% in the previous one.
• The fixed wage obligation leaves Baghdad limited room to maneuver as budget talks advance.

The latest

Iraq is locked into paying 7.7 trillion dinars in public salaries each month, Finance Minister Falih Sari told parliament Thursday, describing the obligation as binding on his ministry. In the same address, he said non-oil revenue would account for 19% of the coming budget against 11% in the previous one, and listed measures the government has already taken to ease pressure on housing and infrastructure arrears.

Details

• The figure: Sari put the ministry's recurring monthly salary obligation at 7.7 trillion dinars, according to the Iraqi News Agency, which received the text of his address to parliament. He framed the payment as a legal obligation rather than a discretionary line, leaving it outside the space where spending can be adjusted.
• Revenue shift: The minister said non-oil revenue would represent 19% of the upcoming budget, compared with 11% in the previous budget. That is a near-doubling of the share of state income not tied to crude sales, though he did not give a dinar value for either figure or name the sources driving the increase.
• Housing measure: Among the steps the government has taken, Sari cited the allocation of 1 trillion dinars from the Central Bank of Iraq to support the housing sector. He did not set out a disbursement timetable or identify which institutions would channel the funds.
• Arrears paid: Sari said the government had settled dues owed for completed work on sewage projects, pointing to it as evidence the ministry is clearing contractor obligations. The address did not specify the value of the payments or how many projects were covered.
• The venue: The remarks were delivered in an address before the Council of Representatives, the chamber that must ultimately approve the budget. Sari used the session to set out both the salary burden and the revenue assumptions underpinning the government's plan.
• What was not said: The minister did not disclose projected total spending, the expected deficit, or the oil price assumption behind the coming budget. Nor did he indicate whether the salary bill is expected to grow further in the next fiscal year.

Background

Public-sector wages are the largest single recurring item in Iraq's budget, and the state remains the country's dominant employer. Oil sales have historically funded the overwhelming majority of state revenue, making the non-oil share a closely watched indicator of fiscal diversification.

Between the lines

The two headline numbers pull against each other. A fixed 7.7 trillion dinar monthly obligation consumes revenue before any discretionary choices are made, which makes the rise in the non-oil share from 11% to 19% less a cushion than a necessary offset. The 1 trillion dinar housing allocation from the Central Bank, rather than from budget lines, also signals where the ministry sees spare capacity.

What's next

Watch parliament's handling of the budget bill, including whether lawmakers press Sari for total spending and deficit figures, and whether the 1 trillion dinar housing allocation is given a disbursement schedule.

Source: Iraqi News Agency (INA)