Proposed Law to Establish Salary Stability Fund in Iraq
The parliamentary financial committee has revealed details of a proposed law aimed at establishing a "Salary Stability Fund" in Iraq, noting that completing the legislative procedures and voting on it within the parliament depends on obtaining government approval due to the clear financial implications involved in the project. The committee chairman explained that the proposal has met all constitutional and legal requirements for submitting draft laws, according to Article (60/Second) of the constitution and Article (121) of the parliament’s internal regulations. He pointed out that despite fulfilling the formal conditions, the financial aspect of the project requires approval from the executive authority before the final vote, in compliance with rulings and interpretations issued by the Supreme Federal Court that regulate the legislative relationship between the executive and legislative branches in laws with financial impact. The proposal stipulates the establishment of a "Salary Stability Fund" as an entity with legal personality and financial and administrative independence, directly linked to the Council of Ministers, aiming to provide a secure financial cover to ensure the continuous payment of government employees’ salaries without interruption or delay, in anticipation of any sharp decline in oil prices or an actual deficit in public revenue financing. Regarding funding, the fund’s management relies on allocating a portion of the annual oil surpluses, in addition to profits and returns from investing the fund’s money, as well as internal and external grants and loans when needed, and any other resources approved by the Council of Ministers. Concerning the fund’s management and ensuring governance of its funds, administration will be supervised by the Ministry of Finance, with participation from representatives of the Central Bank of Iraq, the Ministry of Planning, the Federal Integrity Commission, and an independent economic expert. The fund’s internal regulations will define the detailed authorities and operational mechanisms of the board of directors. This proposal comes as a response to the general budget structure, which primarily depends on oil revenues, linking the country’s financial stability and the payment of employees’ entitlements directly to fluctuations in global oil prices and the accompanying risks of resource decline or financial deficit.
