Iraq faces a growing challenge as public sector salaries create fiscal burden on the national budget. More than 10.5 million Iraqis now depend on state payrolls every month. This number equals nearly one-quarter of the country’s population.
The Parliamentary Finance Committee confirmed that the Ministry of Finance provides about 8 trillion Iraqi dinars monthly. This amount covers the salaries of employees, retirees, and social protection beneficiaries. Such a large sum makes public sector salaries create fiscal burden across the economy.
The report explained that over 4.2 million Iraqis work as government employees. More than 3 million citizens receive retirement payments. Another 3 million benefit from the social protection network. These groups combined show how large the state’s responsibility has become.
Compared with other nations, Iraq’s share of people depending on state salaries is among the highest worldwide. the United States, only around 13 to 15 percent of the population works in the public sector. In the United Kingdom, the share is closer to 22 to 23 percent. In many developing countries, the figure is even below 10 percent. Iraq stands out with a far heavier load.
Because of this, experts believe that public sector salaries create fiscal burden that harms future development. The huge spending on payroll reduces the money available for investments in infrastructure, healthcare, and education. These areas need urgent attention for long-term stability.
Moein Al-Kazemi, a member of the finance committee, stated that payments remain secure until the end of the year. He explained that the country’s monthly oil revenues, which reach more than 6 billion dollars, cover the costs. However, Iraq’s reliance on oil exports makes the system fragile. Any drop in oil prices can threaten the government’s ability to continue these payments.
Iraq now faces the hard choice of reform. Leaders must find ways to reduce dependency on public salaries while still protecting families. Without change, the economy may face increasing risks in the future.