Shafaq News- Baghdad

Iraq’s caretaker Prime Minister Mohammed Shia Al-Sudani on Monday terminated several adviser and expert contracts within his office as part of cost-cutting and administrative restructuring measures.

According to a statement, the move aligns with directives to rationalize spending and streamline internal structures, including merging departments and ending advisory roles tied to monitoring government programs, which it said are 88% complete.

No details were given on how many contracts were canceled or the expected savings.

Al-Sudani also ordered all state institutions to enforce Cabinet decisions aimed at boosting revenues and curbing expenditures under his economic reform agenda. Measures include increasing income from telecommunications and energy sectors, expanding electronic electricity bill collection, and tightening customs and vehicle registration procedures to maximize state revenue.

The decision triggered political and oversight scrutiny over the legal basis of the advisers’ appointments and the scale of their compensation. Economic expert Mohammed Al-Hasani told Shafaq News the government should disclose the advisers’ achievements, salaries, benefits, and financial records, and subject them to audit to protect public funds and reinforce transparency. He called for clearer regulations to define advisory mandates and prevent overlaps with ministers and senior officials.

Iraq continues to operate under the “1/12 spending rule” due to the absence of an approved federal budget, limiting monthly expenditures to one-twelfth of the previous year’s operational spending and restricting allocations beyond salaries and pensions.

Read more: Iraq’s budget paralysis: How the 1/12 rule reduced state finances to salary payments