The budget is knocking on parliament’s doors…threatened revenues and regional tensions are complicating Baghdad’s calculations
The budget is knocking on parliament’s doors…threatened revenues and regional tensions are complicating Baghdad’s calculations
9-9-2026
The fact that the budget is still scheduled to be sent to Parliament does not inspire much optimism, especially given the regional tensions and rapidly changing events whose nature is unpredictable. Iraqis are awaiting the budget law to benefit many segments of society, most notably government employees who are still waiting for delayed bonuses and promotions. Contractors, project owners, and farmers are also waiting to receive their payments. Meanwhile, observers believe that Iraq’s continued reliance on oil revenues is not in the best interest of the Iraqi economy. They emphasize the importance of increasing non-oil revenues to alleviate the pressure caused by the tensions and the war imposed by the US and its Zionist entity on Iran in the region, and its repercussions on the regional situation.
MP Mohammed al-Moussawi told Al-Maalomah that “the scheduled date for sending the federal budget to Parliament remains unchanged, as planned for October,” adding that “the relevant authorities are continuing to finalize the procedures and financial data related to the law according to the established timelines.”
He added that “talk of postponing the submission of the law is inaccurate, and there are no official data or indicators suggesting the possibility of postponing the submission date,” noting that “Parliament is awaiting the law to discuss and approve it.”
Al-Moussawi stressed “the importance of the government adhering to the specified date to enable the relevant parliamentary committees to study the budget items and vote on them without delay.”
For his part, the Prime Minister’s financial advisor, Mazhar Muhammad Salih, told Al-Maalomah that “any shocks or crises affecting the global economy from abroad directly impact the Iraqi economy, given the high level of reliance on oil as the primary source of public revenue.”
He added that “one of the fundamental solutions to avoid the repercussions of global economic crises lies in diversifying the economy and sources of financial revenue,” emphasizing “the necessity of gradually transitioning towards a more diversified economy that is less dependent on oil.”
Salih pointed out that “Iraq should, over the next ten years, work to increase the percentage of non-oil revenues to constitute about 45 percent of total budget revenues, which will enhance financial stability and reduce the economy’s sensitivity to fluctuations in oil prices.”
He emphasized that “supporting the general budget requires diversifying funding and revenue sources, along with strengthening productive sectors, especially agriculture and industry, which will contribute to building a more sustainable economy capable of withstanding crises.”
In a related context, economist Dr. Safwan Qusay explained to Al-Maalomah that “the 2026 budget will be replaced by a law on internal and external borrowing, grants, and donations, while efforts are underway to prepare the 2027 budget with the aim of establishing a clear path for public spending and funding sources.”
He added that “there are multiple assumptions regarding next year’s budget, as everyone hopes that the existing disputes and tensions in the region related to the Strait of Hormuz will be resolved before October 15th, given that Iraq relies on oil revenues collected from its southern ports for 90 percent of its income.”
He added, “If tensions persist and the problem remains unresolved, Iraq will move towards spending governed by permanent laws, with the necessity of bolstering the revenues of government units so they can finance themselves independently of the Ministry of Finance.”
almaalomah.me
