Iraq Advances 2027 Budget Bill to Ministerial Review

ERBIL (Kurdistan24) - Iraq's Ministry of Finance has completed preparations for the 2027 federal general budget bill and referred the draft to the Ministerial Council for the Economy, moving it into the next stage of government review.

The ministry said in a statement on Sunday, that the draft was sent to the council after the completion of the preparation process led by the Higher Committee for Budget Preparation.

Finance Minister Falah Sari supervised the committee's work, which included representatives from federal ministries, the Kurdistan Region and Iraq's provinces, as well as consultations with financial experts from inside and outside the country.

Sari said the Finance Ministry had fulfilled its responsibility to prepare the draft budget within the specified timeframe.

The proposed budget also introduces a gradual expansion of what the ministry described as a "program and performance budgeting" system, designed to connect government spending more closely with stated objectives and measurable results.

The system will initially be applied to the electricity sector and in the provinces of Diwaniyah and Salahaddin.

According to the ministry, the initial implementation is intended to prepare for a wider transition toward program-and-performance budgeting across state institutions.

The approach shifts part of the budget process toward evaluating how financial allocations relate to specific programs, goals and outcomes rather than focusing solely on expenditure categories.

The Finance Ministry said the 2027 draft also takes into account the priorities of the government program, changes in Iraq's economic and financial conditions, and the needs of different sections of society.

Those priorities are being considered within the limits of the state's available financial capacity, according to the statement.

The draft places particular emphasis on increasing non-oil revenues and strengthening fiscal discipline, two areas identified by the ministry as central to the government's budget planning.

Iraq's public finances have traditionally depended heavily on oil revenues, making efforts to expand alternative sources of state income an important component of the budget preparation process.

The ministry did not provide figures for projected expenditure, revenue or the fiscal deficit in the statement.

The budget is now expected to be discussed by the Ministerial Council for the Economy, which will examine the draft before it advances to the Iraqi Council of Ministers.

Following the council's review, the bill is expected to be referred to the cabinet for final government approval in accordance with established procedures.

The submission therefore marks the completion of the Finance Ministry's drafting stage while beginning the government-level review of spending priorities, revenue policy and the broader fiscal framework for 2027.