Shafaq News- Baghdad
Iraq's government is unlikely to submit the 2026 federalbudget due to delays in preparation, a member of parliament's Finance Committeesaid on Thursday, indicating that authorities are now focusing on drafting the2027 budget instead.
Hussein Al-Darraji of the Hoqooq bloc told Shafaq News thatthe government is preparing substantial changes to the budget law, which woulddiffer from previous budgets in its structure, spending schedules, andmethodology for determining expenditure needs. The draft is expected to reachparliament in October or November after being revised to reduce the budgetdeficit and secure approval before the start of the next fiscal year.
The shift toward the 2027 budget reflects the impracticalityof approving a 2026 budget with the year already approaching its second half,according to Al-Darraji. Iraq is currently financing public-sector salaries andessential operating expenses under the temporary one-twelfth spending mechanismstipulated in the Financial Management Law, using allocations carried over fromthe previous three-year budget.
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PM Mohammed Shia Al-Sudani's government prepared the broadoutlines of the 2026 budget before leaving office. However, the draft stalledafter Iraq entered an election period and the caretaker government phase.
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