Shafaq News- Baghdad
Iraq's parliament and government plan to gradually adopt aprogram and performance budgeting system starting with the 2027 federal budget,a member of the parliamentary Finance Committee told Shafaq News on Wednesday.
MP Hussein Al-Darraji said the committee hosted FinanceMinister Faleh Al-Sari last week to discuss key amendments to the budget bill. The first phase would apply to Electricity Ministry and the provinces ofAl-Diwaniyah and Saladin. The 2028 budget would expand the system to fiveministries and five additional provinces before gradually extending it to therest of the country's institutions in subsequent years.
“The new budgeting model aims to protect public funds,strengthen control over government spending, and align financial allocationswith the government's strategic priorities, particularly under the investmentbudget,” he stated.
During its July 7 meeting with Al-Sari and senior FinanceMinistry officials, the Finance Committee reviewed Iraq's financial andeconomic situation and the preparation of the 2027 bill. Committee ChairmanUday Awad said parliament would continue supporting legislation aimed ataddressing fiscal challenges, increasing non-oil revenues, and strengtheningthe country's financial sustainability.
In June, the Cabinet approved the adoption of a program andperformance budgeting framework in coordination with the World Bank and theparliamentary Finance Committee as part of the government's economic reformefforts.
The government began preparing the 2027 budget after twoyears without an enforceable federal budget. Although Iraq enacted a three-yearbudget law covering 2023, 2024, and 2025 under former Prime Minister MohammedShia Al-Sudani, Parliament failed to approve the 2025 spending schedules beforethe fiscal year ended, preventing implementation of that year's budget. Nobudget law was passed for 2026 amid political disputes, regional tensions, andvolatile energy markets.
: Delayed 2026 budget pushes Iraq toward 2027 plan
