Iraq’s Ministry of Planning announced that it has completed the first draft of the investment framework for the 2027 budget. The ministry said the main focus of the budget will be completing ongoing projects and prioritizing them based on their level of completion and public need.
Maher Hammad Johan, Undersecretary of the Ministry of Planning, explained that the ministry plays a key role in preparing the 2027 program and performance budget. He said the ministry is working on two main frameworks. The first focuses on explaining the concepts of program and performance budgeting, while the second focuses on measuring results and performance.
According to Johan, the idea behind program and performance budgeting is to link spending directly to results. Instead of detailing every expense item, such as fuel or operating costs, the budget will focus on what is being achieved. For example, rather than listing individual expenses, the budget would show that funding is being used to build a school that serves citizens.
He said meetings are continuing with various government bodies to finalize the budget framework. The Ministry of Planning has also completed the first draft of the investment budget after extensive discussions with ministries, governorates, and the Ministry of Finance.
Johan explained that several options were studied while preparing the framework. One option looked at the spending needs of ministries and local governments. Another focused on project progress and priorities identified by the Ministry of Planning. A third option considered the Ministry of Finance’s ability to provide funding and the capacity of government agencies to implement projects.
The ministry ultimately chose an approach that mainly depends on actual project progress during 2026. Funding priorities will be based on how much work has already been completed and how much money is needed to finish projects.
He said the investment budget is expected to represent around 20% to 25% of the total state budget. Part of the funding will support ongoing and new loans, while the remainder will be allocated to general budget needs.
The ministry has also taken limited financial resources into account. Projects that are closest to completion and those that provide the greatest benefit to citizens will receive priority funding.
Johan stressed that the ministry does not support adding many new projects at this stage. Instead, the focus should be on completing existing projects that are already under construction and delivering their services to the public. New projects will only be considered in very important cases.
He noted that there are around 3,000 projects at the ministerial level. The ministry has already reviewed many projects and reduced unnecessary spending by reassessing projects that have not yet started and examining their feasibility.
He also pointed out that some projects have reached completion rates of 97% or 98% but are still waiting for minor services such as water or electricity connections before they can begin operating. The ministry wants these projects completed and put into service as quickly as possible.
Johan warned that the current financial challenges could lead to a return of stalled projects. Although most agencies have not officially reported project suspensions, productivity on many projects has fallen sharply compared to previous years.
He said the ministry spent the past three years reviving many projects that had stalled since the 2014 crisis, but current conditions could create similar problems if funding difficulties continue.
Regarding contractors’ payments, Johan revealed that accumulated government debts to contractors total about 8 trillion Iraqi dinars. He said the government has already started paying part of these dues and that the Prime Minister has directed further payments in the coming months, potentially exceeding 20% of the total amount owed.
Johan emphasized that contractors are an important part of the private sector and play a major role in development and job creation. He said the ministry will continue supporting efforts to ensure contractors and companies receive their outstanding payments.
