Iraq’s austerity plan is once again in the spotlight as the
government moves to cut spending and increase revenue amid financial pressures and political uncertainty. But experts warn that these decisions could have serious economic and social consequences, especially for the middle and low-income classes.
If you'd like to Support the channel: https://cash.app/$tishwash... https://paypal.me/tishwash... a FREE transcript at: https://rss.com/podcasts/myfxbuddies....Energy expert Hussein Ismail Al-Bahadli argues that austerity should be limited and gradual, not a deep, long-term program launched during a transitional political phase. He warns that sudden cuts to spending—especially in a rentier state that relies heavily on government funding—could destabilize both the economy and citizens’ livelihoods.
• Austerity should NOT be full-scale right now
Al-Bahadli emphasizes the need for caution. Major reforms require a fully empowered government with parliamentary backing—not interim leadership.
• Spending cuts could directly impact citizens
Reducing expenditures may lead to:
weaker public services (health, education, electricity)
fewer job opportunities in government-linked sectors
higher cost of living if new taxes or fees are introduced
• Strict austerity in Iraq could widen inequality
With unemployment and poverty already high, a harsh austerity policy may worsen the social gap and reduce middle-class purchasing power.
Large austerity decisions need legal and social legitimacy, which may not exist in a transitional phase.
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• What SHOULD be done instead?
Al-Bahadli says Iraq should focus on:
reducing corruption and waste
improving revenue from non-oil sectors
strengthening collection systems
stimulating productive economic activity
NOT placing more financial burdens on citizens.
Increased electricity payment collection
Reviewing electricity tariffs
Expanding digital automation for all government payments
Cutting government travel allowances by 90%
Restricting official travel unless absolutely necessary
These measures reflect a serious push to control spending—but at what social cost?
🔍 KEY POINTS FROM THE ARTICLE🏛 New Government Measures Include:• Austerity should NOT be full-scale right now
Al-Bahadli emphasizes the need for caution. Major reforms require a fully empowered government with parliamentary backing—not interim leadership.
• Spending cuts could directly impact citizens
Reducing expenditures may lead to:
weaker public services (health, education, electricity)
fewer job opportunities in government-linked sectors
higher cost of living if new taxes or fees are introduced
• Strict austerity in Iraq could widen inequality
With unemployment and poverty already high, a harsh austerity policy may worsen the social gap and reduce middle-class purchasing power.
Large austerity decisions need legal and social legitimacy, which may not exist in a transitional phase.
• What SHOULD be done instead?
Al-Bahadli says Iraq should focus on:
reducing corruption and waste
improving revenue from non-oil sectors
strengthening collection systems
stimulating productive economic activity
NOT placing more financial burdens on citizens.
Increased electricity payment collection
Reviewing electricity tariffs
Expanding digital automation for all government payments
Cutting government travel allowances by 90%
Restricting official travel unless absolutely necessary
These measures reflect a serious push to control spending—but at what social cost?
🏛 New Government Measures Include:
Increased electricity payment collection
Reviewing electricity tariffs
Expanding digital automation for all government payments
Cutting government travel allowances by 90%
Restricting official travel unless absolutely necessary
