The Legal Framework of public loan in Iraq An Analytical Study in Light of the Constitution, Relevant Financial Legislation, and the Law of the Federal Board of Supreme Audit for the Allocation of Federal Revenues

Abstract

The public loan is subject to various legal regulations, both formal and substantive, as stipulated in the Constitution and the relevant financial laws governing public loans. It is also overseen by an independent specialized authority — the Federal Board of Supreme Audit for Monitoring the Allocation of Federal Revenues. The law grants this authority several tools to achieve its objectives, which focus on ensuring a fair distribution of federal revenues and international loans according to the entitlements of regions and governorates not organized into a region. This is accomplished through the authority’s participation in drafting the Federal General Budget Law, verifying the accuracy of loan distribution calculations based on criteria set by regulation, and monitoring the financing of allocations from international loans for each region or governorate not organized into a region. However, the law, the authority’s internal regulations, and the instructions for its formation do not clarify how the authority should participate in the drafting of the budget law. They also fail to specify the criteria and standards upon which the distribution of federal revenues — including public loans — is based. Therefore, our proposals focus on addressing these gaps in order to strengthen the authority’s role in achieving its intended purpose and the reasons for its establishment, which include oversight and the promotion of justice in the allocation of revenues and distribution of international loans in a manner that benefits all components of the Iraqi people.