Shafaq News- Baghdad
Iraq's parliament and government plan to gradually adopt a program and performance budgeting system starting with the 2027 federal budget, a member of the parliamentary Finance Committee told Shafaq News on Wednesday.
MP Hussein Al-Darraji said the committee hosted Finance Minister Faleh Al-Sari last week to discuss key amendments to the budget bill. The first phase would apply to Electricity Ministry and the provinces of Al-Diwaniyah and Saladin. The 2028 budget would expand the system to five ministries and five additional provinces before gradually extending it to the rest of the country's institutions in subsequent years.
“The new budgeting model aims to protect public funds, strengthen control over government spending, and align financial allocations with the government's strategic priorities, particularly under the investment budget,” he stated.
During its July 7 meeting with Al-Sari and senior Finance Ministry officials, the Finance Committee reviewed Iraq's financial and economic situation and the preparation of the 2027 bill. Committee Chairman Uday Awad said parliament would continue supporting legislation aimed at addressing fiscal challenges, increasing non-oil revenues, and strengthening the country's financial sustainability.
In June, the Cabinet approved the adoption of a program and performance budgeting framework in coordination with the World Bank and the parliamentary Finance Committee as part of the government's economic reform efforts.
The government began preparing the 2027 budget after two years without an enforceable federal budget. Although Iraq enacted a three-year budget law covering 2023, 2024, and 2025 under former Prime Minister Mohammed Shia Al-Sudani, Parliament failed to approve the 2025 spending schedules before the fiscal year ended, preventing implementation of that year's budget. No budget law was passed for 2026 amid political disputes, regional tensions, and volatile energy markets.