‘There is no money’: Is Iraq entering a phase of lean years?

What the report says

Al Jazeera reports that Iraq is facing a worsening fiscal squeeze after Health Minister Abdul Hussein al-Musawi publicly said that “there is no money,” a remark that drew attention to the state’s difficulty in meeting basic expenses. The article says the government now prioritizes paying salaries amid a liquidity crunch, with monthly needs put at about 10.8 trillion dinars, or roughly $8.24bn, for wages and other obligations.

The pressure comes as oil revenues have fallen sharply, which Al Jazeera links to the halt of exports through the Strait of Hormuz and to Iraq’s heavy dependence on oil income. A government source told the outlet that the state’s salary commitments for civil servants, retirees and social welfare beneficiaries total 7.8 trillion dinars per month, while revenues in recent months have been far lower than spending. The report says this has left a funding gap and raised the possibility of borrowing.

According to the article, the strain is already visible in delayed salary payments, with government employees describing disruptions to household budgets and basic needs. To manage the shortfall, officials are considering spending cuts, including changes to food ration card support, trade ministry allocations and other public outlays.

The broader significance, the piece notes, is that Iraq’s reliance on oil has left public finances exposed to shocks in export routes and energy markets, complicating long-standing efforts to diversify the economy.