The 2027 budget: postponed solutions and closed revenue streams
The 2027 budget: postponed solutions and closed revenue streams
11-1-2026
The 2027 budget remains circulating within the Cabinet, with no clear date set for its submission to Parliament. This is especially true after the government’s announcement of raising the exchange rate of the dollar against the dinar, necessitating a review of many budget items and a recalculation of accounts to reflect the new realities. Meanwhile, some criticism has emerged regarding the existence of numerous potential revenue streams that remain unexplored for unclear reasons. This situation may force the government to resort to borrowing to cover its expenses.
Economic expert Dr. Safwan Qusay told Al-Maalomah, “Rationalizing spending will be the focus of the coming period, along with developing new government revenue streams and other means, in addition to maximizing tax collection, controlling non-oil revenues, and involving the private sector to compensate for the shortfall in government spending, so that Iraq can continue to achieve a degree of financial and economic stability.”
He added, “Iraq is poised to attract a number of international companies and investments from various countries. The funds that will flow into the Iraqi economy in the coming period will help offset the shortfall in public spending.”
He explained that “the new investments will create job opportunities in various sectors, maintain targeted growth rates, and shift the Iraqi economy from the cycle of fluctuating oil prices and export volumes to new paths that can succeed in finding sustainable sources of income in the coming stages.”
For his part, Hussein al-Karawi, a member of the organizing committee for the popular movement for the Faw Port and the Silk Road, emphasized to Al-Maalomah that “the Ministry of Oil’s policy is a failure, having set the price of a barrel of oil at its lowest levels despite the global rise in crude prices. Setting the price per barrel in the budget at less than $58 means that the ministry expects prices to fall.”
He continued, “If the ministry possessed factories, refineries, and resources for downstream industries, things would be different, and the price per barrel would be higher than what is in the budget, especially since Iraq will be exporting refined petroleum products abroad at high prices.”
He pointed out that “there is potential to attract various international companies to invest in downstream industries and petrochemicals in order to increase oil prices, export refined products abroad, and generate significant revenue for the budget instead of resorting to the exchange rate to achieve increased revenues.”
In a related development, MP Mohammed al-Bayati explained to Al-Maalomah that “most of the items in the 2027 budget remain unclear because it has not yet been finalized within the government. Therefore, we are awaiting a vote on it by the Council of Ministers before it reaches the Parliament, and then it will be discussed by the Parliamentary Finance Committee according to established procedures.”
He pointed out that “the government resorting to borrowing to support the budget is very likely, especially given the large financial deficit, particularly in light of the evolving situation in the region and Baghdad’s inability to export its usual quantities of crude oil, which constitutes about 90% of the country’s revenues.”
Al-Bayati added, “All messages received from the government confirm that the budget will reach the House of Representatives during November. Therefore, we are awaiting the budget items, as they will include many topics requiring extensive discussion.” He emphasized that “the size of the budget deficit remains unknown.”
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