Iraq awaits its 2027 budget… assurances that it will focus on securing expenditures and addressing some economic issues.
The Iraqi people are awaiting the 2027 budget to address the country’s financial crisis and to determine the government’s ability to secure operational expenses. These expenses are a major concern for government employees and other groups receiving government payments. Many other sectors, such as farmers, contractors, and companies operating in Iraq, are also waiting for this budget to learn the fate of their dues.
Meanwhile, the government continues to borrow money to pay salaries and secure essential supplies. Parliamentary assurances indicate that the upcoming budget will focus on securing expenditures and implementing some economic reforms in light of the current situation.
Economic expert Dr. Safwan Qusay told Al-Maalomah, “Iraq still lacks a specialized company that purchases debt at a discount, while most countries in the world have such companies that buy debt, whether governmental or otherwise.”
He added, “Iraq needs to establish a clear mechanism for repaying internal and external debts. While borrowing is not difficult and can be undertaken by government ministries, the repayment process requires a defined mechanism.”
He explained that “alleviating the financial crisis requires collecting taxes from companies operating within Iraq and recovering their outstanding debts, in addition to utilizing the credit portfolios offered by the Central Bank.”
For his part, economic expert Abdul Rahman al-Mashhadani told Al-Maalomah that “the government has set an estimated price for a barrel of oil next year between $60 and $70, a figure difficult to rely on given the war and low export rates, as well as the fact that oil is being sold at the port.”
He added that “the initial estimates for the total budget amount to 150 trillion dinars, of which 135 trillion will go to the operational budget (salaries and daily expenses), and a meager 15 trillion for the investment budget, thus deepening the financial deficit to dangerous levels.”
Al-Mashhadani explained that “these challenges and others will be the primary obstacle to finalizing the 2027 budget.” He pointed out that “the crisis coincides with a frightening decline in the reserves of the Central Bank of Iraq as a result of its continued sale of foreign currency to the private sector to finance imports, without any corresponding compensatory dollar inflows.” He revealed that “what has recently reached the Central Bank has not exceeded one billion dollars.”
In a related matter, Member of Parliament’s Finance Committee, Muhammad al-Shammari, told Al-Maalomah that “there is ongoing communication between the Finance Committee and the Ministry of Finance regarding the date for submitting the 2027 budget, and it is expected to reach Parliament in mid-October.” He emphasized that “salaries are secured and there are no concerns about their disbursement.”
He added that “the upcoming budget will be distinctly economic and will focus on economic and financial aspects in line with the requirements of the current phase.” He explained that “the Finance Committee is continuously monitoring the details of preparing the draft budget and the expected date for its submission to Parliament with the relevant government agencies.”
Al-Shammari pointed out that “the early arrival of the draft budget to Parliament would give the Finance Committee ample time to study its articles and allocations, and to discuss the financial and economic sections contained therein, thus contributing to making the necessary amendments and approving it within the specified deadlines.”
He stressed “the importance of expediting the completion of the budget preparation procedures and sending it to the House of Representatives, given its significance in regulating government spending and determining the financial and economic priorities for the next phase.”
Almaalomah.me