The Ministry of Finance continues temporary spending... Will the 2026 budget law be postponed to 2027?

[RJG]

The Ministry of Finance continues temporary spending... Will the 2026 budget law be postponed to 2027?

economy

2026-05-25 | 04:02

 

 

Source:

the morning

 

253 viewed

 

Alsumaria News– Economy:

As several months of this year have passed, it has been determinedOil CommitteeGas and natural resources inHouse of Representatives4 key features of this year's budget, as explained by the Prime Minister's financial advisor,Mazhar Muhammad Salih, thatMinistry of FinanceCurrently, revenues and expenditures are being carefully managed within short-term deficit conditions, in accordance with the provisionsFinancial Management LawFederal Decree No. 6 of 2019, as amended, explained that the budget has now become a means of absorbing shocks, especially after what can be called the "Hormuz shock".

Saleh stated that "the current mechanism relies on a temporary disbursement rate of 1/12 of the actual current expenditures for the 2025 fiscal year." He explained that "this mechanism ensures the continued funding of essential operating expenses and covers the obligations of ongoing investment projects, as well as those that have been completed and are ready for operation."

 

 

 

 

He explained, "However, this framework does not allow for the creation of new expenditures or the launch of new investment projects until the 2026 federal budget law is enacted." Saleh added, "With the escalating geopolitical changes in the region..."GulfWhat could be termed the "Hormuz shock" presents fiscal policy with a critical test. The budget is no longer merely a tool for managing revenues and expenditures, but has transformed into a means of absorbing external shocks, achieving economic stability, and maintaining the development trajectory in a highly volatile regional and international environment.

He continued, "In these circumstances, the efficiency of public finance management, the flexibility to reallocate spending priorities, and the ability to safeguard monetary and economic stability become crucial factors for the Iraqi economy to transition to a more secure and sustainable phase."

Saleh indicated that "the proposed scenario is the possibility of legislating a budget for the remainder of 2026." He explained that "if a climate of peace prevails, the budget deficit will be significantly lower, as the resumption of exports of 85 percent of oil through the Strait of Hormuz will ensure real revenue inflows within the approved estimates."

He added, "However, if the conditions of the US-Iranian war and its repercussions on the ability toIraqRegarding oil exports, any budget approved under these circumstances will have a larger deficit, as oil is the primary source of funding for public spending. Saleh concluded, "Therefore, the second half of 2026 will directly reflect these circumstances in the size of the expected deficit and in the public spending ceilings that will be adopted for the fiscal year." Meanwhile,

four key features were identified.
Oil CommitteeGas and natural resources inHouse of RepresentativesFour key features of this year's budget. Committee member Hawraa Aziz said...Al-MousawiThis year's budget will likely be based on a lower (hedging) oil price for 2026, around $60 per barrel, along with spending cuts, increased non-oil revenues, and a reduction in total dependence on oil.

Discussions are underway regarding efforts to reduce the budget deficit given the expected decline in global oil prices, as any increase in the price of oil supplied to local refineries could gradually impact citizens. For

his
part, Ali al-Azirjawi, a member of the State of Law Coalition, stated that there is no longer enough time to submit the 2026 budget, indicating the necessity of...Asylum" Towards preparing an emergency plan similar to the Food Security Law, to be agreed upon quickly, to ensure the continued functioning of the government and ministries in an organized and efficient manner."

He added that "adopting an emergency plan is a realistic option in light of the current challenges," noting "the importance of expediting its vote withincabinetAnd then approve it so that it can assume its executive role as quickly as possible.”

Al-Azirjawi explained that “Iraq faces a number of economic challenges, most notably the size of its internal and external debt, which requires serious solutions, in addition to security challenges and regional tensions that further complicate the overall situation.” In



a proactive move
, economic researcher Bassam Raad said that “the proposal put forward by the Oil and Gas Committee to adopt a hedging oil price of $60 per barrel represents a proactive step that appears aimed at controlling public spending and avoiding further internal debt.”

Raad added that “a careful reading of the figures and international economic warnings, especially the warnings of… ”International Monetary FundThis reveals inevitable challenges that could render this figure merely a temporary fix.

He explained that "adopting a price of $60 per barrel with an export volume of 3 million barrels per day would generate oil revenues equivalent to approximately 85 trillion Iraqi dinars, while the actual need to cover operational and investment expenses, even after reductions, is no less than 100 trillion dinars, meaning the deficit will persist even with adherence to a conservative price."

Raad clarified that "oil remains hostage to geopolitical tensions due to the disruption of export routes throughStrait of HormuzOil exports plummeted by 90 percent last April, meaning this year will be a vicious cycle in which public finances struggle to secure salaries and avoid accumulating debt. The economist added that

postponing the budget further contributed to this situation.
Nabil Al-MarsoumiThe postponement of the 2026 budget to 2027 was attributed to several reasons, most notably the limited time available, as the country is now halfway through 2026. Additionally, the volatility of oil prices and fluctuating export volumes, particularly after the Strait of Hormuz crisis, makes estimating oil revenues for this year more difficult.

Al-Marsoumi warned that the absence of a budget means the government lacks the legal authority to borrow domestically and internationally. He explained that if the 2026 budget is not approved, the government must seek legislation authorizing it to borrow to cover the deficit, as occurred in 2022 when Parliament passed laws allowing the government to borrow domestically and internationally. Any borrowing without legal authorization is considered a violation.

https://www.alsumaria.tv/news/economy/565102/المالية-تواصل-الصرف-المؤقت-فهل-يُرحل-قانون-موازنة-2026-إلى-2027؟

[screwball]

On 5/25/2026 at 6:17 AM, RJG said:

"However, this framework does not allow for the creation of new expenditures or the launch of new investment projects until the 2026 federal budget law is enacted." Saleh added, "With the escalating geopolitical changes in the region..."GulfWhat could be termed the "Hormuz shock" presents fiscal policy with a critical test.

 

On 5/25/2026 at 6:17 AM, RJG said:

In these circumstances, the efficiency of public finance management, the flexibility to reallocate spending priorities, and the ability to safeguard monetary and economic stability become crucial factors for the Iraqi economy to transition to a more secure and sustainable phase.

 

[screwball]

On 5/25/2026 at 6:17 AM, RJG said:

no longer enough time to submit the 2026 budget, indicating the necessity of...Asylum" Towards preparing an emergency plan similar to the Food Security Law, to be agreed upon quickly, to ensure the continued functioning of the government and ministries in an organized and efficient manner."

 

[screwball]

increasing subsidies for food essentials, sounds like what they did in previous years....

[screwball]

temp budget for last 6 months of the year....possible...i can guranatee that all countries will be on the new financial system by end of December at latest.....hoping for movement around july 4th to midterms....things are moving fast

[md11fr8dawg]

On 5/25/2026 at 7:17 AM, RJG said:

Will the 2026 budget law be postponed to 2027?

Is a Pigs ass pork???

[screwball]

8 hours ago, md11fr8dawg said:

Is a Pigs ass pork???

maybe not....

[Smokey Mtn. Dinar]

On 5/27/2026 at 9:40 AM, md11fr8dawg said:

Is a Pigs ass pork???

 

On 5/27/2026 at 6:03 PM, screwball said:

maybe not....

 

 

And MAYBE pigs will fly!  

[TnGBO]

Hey Smokey Mtn. Dinar, where is the best place to see the firefly phenom around Elkmont?

 

[Smokey Mtn. Dinar]

5 hours ago, TnGBO said:

Hey Smokey Mtn. Dinar, where is the best place to see the firefly phenom around Elkmont?

 

 

Hey. I am not very familiar with Elkmont.  But this time of year you can see them  everywhere!  Just curious, where are you from?  I know some people call them fireflies, while others call them lightenin' bugs. I have always called them lightenin' bugs.  (I guess it's a southern thing. I'm a Southern West Virginia native) 

 

Isn't Elkmont over near Cherokee?  I have had friends and neighbors over the years that like to camp at Elkmont.  Have you ever been over in the Cataloochee section of the park?  The way to it is to take exit 20 off Interstate 40, look to your right for the road to Cataloochee.  Follow it til the pavement ends. Keep following for a few more miles to the pavement. Turn left (only way too turn). Welcome to the valley. My church used to camp over there at the group camp.  I think we camp there for about 15 years! Good times.  

[TnGBO]

They're lightenin' bugs in Southwest Tn also. I live at beautiful Pickwick Lake. These lightenin bugs are synchronized. It's an amazing sight to see. I'm Greg Parrish on facebook.