Iraq’s Finance Ministry Refutes Claims of Salary Budget Deficit, Confirms Retiree Payments Fully Secured

Peregraf - The Iraqi Ministry of Finance has rejected statements made by a Member of Parliament regarding salary expenditures and public revenues, saying the figures presented were "inaccurate" and risked misleading public opinion.

In an official clarification, the Ministry said claims that monthly salary spending amounts to 8.5 trillion dinars against revenues of no more than 6 trillion dinars are incorrect. It confirmed that total monthly salary obligations-including payments to employees, retirees, and beneficiaries of the Social Protection Network-do not exceed 6 trillion dinars, in line with the actual average monthly revenues.

The Ministry added that talk of a 2 trillion dinar deficit reflects a "financially inaccurate reading," explaining that the amount in question represents part of the oil revenues allocated in advance to fund the following month’s salaries as part of the regular cash-flow cycle. This, it stressed, does not constitute a funding shortage or deficit.

Salary Disbursement Schedule Adjusted for Operational Reasons

The Ministry also clarified the timeline for the disbursement of retiree and social welfare salaries. It said that adopting the second day of each month-rather than the seventeenth-as the payment date was an organizational measure implemented before the widespread use of electronic payment cards to prevent overcrowding at banks.

It added that this timing is linked to the process of converting oil revenues from dollars to dinars and the need to complete banking procedures, especially when official holidays fall at the beginning of the month.

Retirees’ Financial Rights Guaranteed

Reaffirming its commitment, the Iraqi Ministry of Finance stressed that retirees remain a top priority in its financial policy, and that all their entitlements are fully secured. The measures taken, it said, aim to organize financial operations and ensure sustainable funding for all obligations.