Iraq’s 2027 Budget Estimated at 217 Trillion Dinars, With 50 Trillion-Dinar Deficit

Parliamentary Finance Committee member Abbas Ahyal said on Tuesday that Iraq’s draft federal budget for 2027 is estimated at 217 trillion Iraqi dinars, with the projected deficit reaching 50 trillion dinars.

Ahyal said the committee hosted Finance Minister Faleh Al-Sari to discuss the draft budget, its key provisions and allocations, as well as the expected date for submitting it to parliament.

He explained that the draft is based on an oil price of $58 per barrel, with exports set at 4 million barrels per day, while the exchange rate has been set at 1,500 dinars per US dollar.

The proposed budget also includes the permanent appointment of contract and daily-wage workers, in addition to providing 100,000 contract positions, half of which are expected to be allocated to ministries and security institutions.

The meeting further addressed mechanisms for distributing financial allocations between line-item budgeting and performance-based budgeting, with plans to initially implement the latter in a number of provinces and government institutions before expanding it nationwide.

The committee also discussed digital transformation and the automation of government systems, efforts to diversify state revenues and reduce dependence on oil, as well as measures to curb spending and contain the budget deficit.

Other issues included the performance of the banking sector and maintaining the stability of the Iraqi dinar against the US dollar.

The committee stressed the need for closer coordination with the Finance Ministry and an integrated strategy to address financial challenges and produce a budget that meets the country’s economic and fiscal requirements.

The committee had decided on Sunday to summon the finance minister after expressing dissatisfaction over not being consulted or briefed on the draft budget.

Under Iraq’s Financial Management Law, the draft 2027 budget is expected to be submitted to parliament by October 15.