Eco
The Iraqi government is moving towards finalizing the draft federal budget law for 2027, in preparation for its submission to the Council of Representatives. The Ministry of Finance, in coordination with the Ministry of Planning, is setting budget estimates based on an assumed oil price ranging between $60 and $70 per barrel. This price is considered the primary benchmark for determining the volume of expected revenues and available spending ceilings for the state. In this context, Dr. Mazhar Mohammed Saleh, the economic advisor to the Prime Minister, explained that the constitutional process for the budget requires submitting its draft, once completed, to the Ministerial Council for Economy during next September. This step precedes its referral to the Council of Ministers for official submission to the Council of Representatives. Saleh indicated that adopting this oil price range comes amidst ongoing regional tensions that impose increasing pressures on public expenditure. He affirmed the possibility of resorting to a supplementary budget if regional conditions improve by mid-2027. He also clarified that deficit estimates might be based on the hypothetical figure stated in the triennial budget, amounting to 64 trillion Iraqi dinars. Meanwhile, Jamal Kucher, a member of the parliamentary Finance Committee, anticipated that the budget draft would reach the Council of Representatives between late October and early November. Kucher warned that the actual deficit might exceed previous estimates, attributing this to declining oil prices and limited exported quantities. Kucher stressed that increasing oil exports through alternative outlets would not be sufficient to address the anticipated financial deficit, especially given current global market price declines. Kucher also noted that the 2027 budget would see an expanded application of the "program and performance budget" in several ministries and governorates, while the "line-item budget" would continue in other institutions. He pointed out that the project would not include any new investment projects, but rather, investment allocations would be limited to an estimated 20 trillion dinars, sufficient only for completing stalled projects.
