Shafaq News- Baghdad
Iraq's Finance Ministry began drafting the 2027 federalbudget, the first new plan to be prepared after two years without an approvedspending plan, the Prime Minister's Financial Adviser told Shafaq News onMonday.
Mudhir Mohammed Saleh pointed out that the Finance Ministryis expected to complete the draft budget law by September, after which it willbe submitted to the Ministerial Council for the Economy for review before beingreferred to the Council of Ministers for approval and then sent to parliament.
“It is too early to determine the total value of the 2027budget as the final size of the spending plan will be set once the ministrycompletes the draft law.”
The previous government, led by Mohammed Shia Al-Sudani,enacted a three-year budget covering 2023–2025. However, the 2025 spending planwas never implemented after parliament failed to approve its amendedexpenditure schedules before the law expired. The Finance Ministry subsequentlyadopted the one-twelfth (1/12) spending mechanism to finance salaries and othermandatory expenditures. Iraq also failed to approve a 2026 budget because ofdelays in forming a new government, the economic repercussions of the regionalwar, and volatility in energy markets, leaving the country to continueoperating under the temporary spending mechanism.
: 2026 budget: Iraq confronts unprecedented fiscal strain
