Iraq’s Finance Ministry Refers 2027 Budget Draft to Ministerial Council for Economy

Iraq’s Ministry of Finance on Sunday referred the draft federal budget for 2027 to the Ministerial Council for the Economy after completing the preparation process within the scheduled timeframe.

The ministry said the draft was prepared following a series of meetings held by the Higher Budget Preparation Committee, chaired by Finance Minister Falih Sari, with the participation of representatives from ministries, the Kurdistan Region and the provinces, as well as financial experts from inside and outside Iraq.

Sari said the draft includes the gradual adoption of a program-and-performance budgeting approach in the electricity sector and the provinces of Diwaniyah and Salah al-Din. The approach aims to link financial allocations to objectives and outcomes and measure the impact of public spending, paving the way for its wider application across state institutions.

He added that the draft takes into account government priorities, economic and financial developments and spending needs, while focusing on increasing non-oil revenues and strengthening fiscal discipline within available financial resources.

The Ministerial Council for the Economy is expected to review the draft before completing the required procedures and submitting it to the Council of Ministers. Sari had previously announced that the 2027 budget draft would include provisions to transfer contract workers to permanent positions.