Iraq's Health Minister Warns of Empty Treasury as Salaries Face Shortfall
Health Minister Abdul Hussein al-Musawi told employees there is no money, signalling a severe cash shortage that endangers the payment of public salaries.
In a rare candid briefing, Health Minister Abdul Hussein al-Musawi warned that Iraq has run out of money to cover its basic expenditures, especially civil-service salaries. He cited a monthly budget need of roughly 10.8 trillion dinars, while current revenues have fallen to under 3 trillion dinars after oil exports stopped via the Strait of Hormuz. A government source said salaries and welfare payments total about 7.8 trillion dinars, leaving a deficit of 3.2 trillion dinars after partial disbursements.
Prime Minister Ali al-Zaidi's development plan to diversify the economy has been stalled, prompting the spokesperson Haider al-Aboudi to mention possible domestic or external borrowing. Authorities are drafting austerity measures, including cuts to the Ministry of Trade budget and reductions to food-ration allocations. Citizens such as Amira Ali and Bashar Sabbar report that delayed wages are already forcing families to postpone essential expenses.
Why it matters
Iraq's cash crunch threatens public salaries and could force borrowing, affecting millions of citizens.
In this story