Iraqi lawmakers dismiss salary contributions for structural fixes

Shafaq News- Baghdad

Iraqi lawmakers and ministers were asked to donate a portion of their salaries to the State Treasury, in a new initiative designed to ease citizens’ financial burdens and bolster government funds amid a worsening economic crisis.

The initiative, proposed by MP Karim Aliwi Al-Muhammadawi of the Badr Organization, calls on officials to contribute half —or more— of their monthly pay to help reduce taxes and customs fees for citizens. The program could last six months to a year, or until the country’s financial pressures subside.

While the proposal has attracted public attention, it has received little backing in parliament. The current government continues enforcing austerity measures, including salary cuts, higher customs duties, and the removal of advisers from several ministries.

Optics over Substance

MP Abbas Hiyal of the Reconstruction and Development (Al-Ima’ar Wal Tanmiya) Alliance framed salary donations as a minor element of a broader challenge. He conveyed to Shafaq News that Iraq needs structural reforms to navigate the crisis. “Symbolic steps, like donating salaries, require official approval and must accompany genuine reforms and careful financial management.”

Underscoring Iraq’s payroll scale, he noted that the country requires around 85 trillion dinars ($58B) annually to cover public sector salaries. “Iraq is rich in oil and other resources. Temporary fixes won’t solve the problem. We need practical solutions that help the most vulnerable and allocate resources efficiently,” he continued.

MP Thaer Al-Jassim of the National Approach Alliance (Al-Nahj Al-Watani) argued that donations would only matter if they produce tangible results. Speaking to Shafaq News, he suggested, “If giving half a salary strengthens the treasury and supports the economy, even a full donation could be justified. But experts should guide this, not public relations campaigns.”

Jassim also pointed out that reviewing underperforming oil and telecommunications contracts could generate far more revenue than symbolic contributions.

Read more: Iraq’s economic “perfect storm”: Experts warn the crisis is structural and social

The Symbolic Tax

Economist Nawar Al-Saadi indicated that cutting or donating MPs’ salaries would have minimal effect on Iraq’s overall budget. “Public spending depends mainly on oil revenues. Lawmakers’ salaries are a tiny fraction of total expenses, so donations won’t meaningfully reduce the deficit.”

Cautioning that the initiative carries symbolic value by reinforcing trust between citizens and the state, he maintained that the real solution lies in addressing structural imbalances, diversifying revenue, reducing oil dependency, and curbing waste and corruption.

“Salary reductions send a positive message but are not a real economic fix,” he added, pointing that Iraq’s parliament spent more than 5.5 trillion dinars (≈ $3.8B) from 2015 to 2025 while passing 321 laws, averaging over 17 billion dinars (≈ $11.6M) per law.

The fifth parliamentary session which ended in November 11, 2025 recorded the highest spending at 2.4 trillion dinars (≈ $1.6B) for 69 laws, roughly 35 billion dinars (≈ $24M) per law, while the fourth session spent 1.8 trillion dinars (≈ $1.2B) for 91 laws, around 20 billion dinars (≈ $13.7M) per law.

Read more: A Lost Term: Iraq’s weakest parliament since 2003