Iraqi Government Moves Towards Preparing 2027 Budget, Bypassing 2026 Amid Economic Challenges

An Iraqi government official revealed that the government is shifting its focus toward preparing the draft general budget for 2027, bypassing the approval of an independent budget for 2026 due to highly complex technical and financial difficulties following the passing of more than half of the current fiscal year. The official explained that the remaining time is no longer sufficient, prompting the authorities to focus on next year's estimates to align with the current economic reality. This approach comes amid increasing challenges resulting from regional developments and their direct impact on energy markets and international trade. The official added that disruptions in oil exports and pressures on shipping lanes have imposed additional burdens on public revenues. The government is currently working on developing realistic financial estimates to ensure the sustainability of public spending and secure salaries and essential services, given the country's heavy reliance on oil revenues.