Delayed 2026 budget pushes Iraq toward 2027 plan
Shafaq News- Baghdad
Iraq's government is unlikely to submit the 2026 federal budget due to delays in preparation, a member of parliament's Finance Committee said on Thursday, indicating that authorities are now focusing on drafting the 2027 budget instead.
Hussein Al-Darraji of the Hoqooq bloc told Shafaq News that the government is preparing substantial changes to the budget law, which would differ from previous budgets in its structure, spending schedules, and methodology for determining expenditure needs. The draft is expected to reach parliament in October or November after being revised to reduce the budget deficit and secure approval before the start of the next fiscal year.
The shift toward the 2027 budget reflects the impracticality of approving a 2026 budget with the year already approaching its second half, according to Al-Darraji. Iraq is currently financing public-sector salaries and essential operating expenses under the temporary one-twelfth spending mechanism stipulated in the Financial Management Law, using allocations carried over from the previous three-year budget.
Read more: How the 1/12 rule reduced state finances to salary payments
PM Mohammed Shia Al-Sudani's government prepared the broad outlines of the 2026 budget before leaving office. However, the draft stalled after Iraq entered an election period and the caretaker government phase.
Read more: 2026 budget: Iraq confronts unprecedented fiscal strain
