The government is preparing, and parliament is waiting… The 2027 budget faces a crucial financial test.
The government is preparing, and parliament is waiting… The 2027 budget faces a crucial financial test.
8-24-2026
Information / Report…
As the country approaches the final accounts for its current fiscal year, government sources have confirmed the outlines of the timeline and financial roadmap for the 2027 federal budget. They affirmed that the constitutional and legislative process dictates presenting the final draft to the Ministerial Council for the Economy during September, prior to its submission to the Cabinet for approval and official referral to Parliament. This comes amidst expectations that the budget deficit will reach a hypothetical 64 trillion dinars, with the possibility of a supplementary budget in the second half of the year, contingent upon regional stability indicators.
In this context, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed on Monday the official date for presenting the draft 2027 budget law to the Ministerial Council for the Economy for final revisions before its submission to Parliament. He also indicated the likelihood of resorting to a supplementary budget.
Salih told the Information Agency, “The constitutional and legislative process for the federal budget requires presenting the draft, after its completion, to the Ministerial Council for the Economy during September.”
He added that “the draft will then be submitted directly to the Cabinet for approval and official referral to Parliament,” noting “the possibility of resorting to a supplementary budget in mid-2027 if regional conditions improve.”
Saleh explained that “the estimated budget deficit for the upcoming fiscal year may be based on the previously established figure of approximately 64 trillion Iraqi dinars, as stipulated in the three-year budget law.”
Meanwhile, MP Mahmoud al-Shammari, from the Parliamentary Services Alliance, warned on Monday of a severe financial crisis that the country may face, attributing it to mismanagement by successive governments and the decline in Iraq’s foreign currency reserves.
Al-Shammari told Al-Maalomah that “the decline in Iraq’s foreign currency reserves will have dire economic consequences for the country’s economy,” indicating that “the continuation of current economic policies without genuine reform may exacerbate the financial pressures facing the state.”
He added that “the heavy reliance on oil makes the Iraqi economy vulnerable to fluctuations in global markets and crude oil prices,” calling for “diversifying the economy and not depending on oil as the primary source of revenue.”
Al-Shammari stressed “the necessity of developing economic plans and implementing genuine reforms that contribute to strengthening state resources and reducing the risks of financial crises, as well as supporting the productive and investment sectors to ensure sustainable economic stability.”
Earlier, the Governor of the Central Bank of Iraq, Nizar Nasser, announced a decline in Iraq’s foreign currency reserves from $109 billion to $77.5 billion, a decrease of $31.5 billion, or about 28.9% of the previous total reserves. He explained that most of the disbursed funds went to employee salaries.
It is worth noting that Prime Minister Ali Faleh al-Zaidi confirmed during a press conference, which was monitored by Al-Maalomah, that the government is currently working on preparing the 2027 budget. He indicated that it will be sent to Parliament soon, in accordance with the legal process and before mid-October, to serve as a roadmap for the future and not merely an accounting ledger.
almaalomah.me
