The 2027 Budget: A Deficit Of 65 Trillion And The Exchange Rate Is On The Table
September 23, 2026Last updated: September 23, 2026
The Independent/- The Finance Committee in the Iraqi Parliament is preparing to begin one of the most important economic discussions in the coming period, with the expected arrival of the draft federal budget for 2027 to Parliament in mid-October, amid initial estimates indicating a deficit that may reach about 65 trillion dinars.
Member of Parliament’s Finance Committee, Ikhlas Al-Dulaimi, said that the draft budget is expected to reach the House of Representatives on October 15, stressing that the committee has prepared its plans and preparations to study the draft, organize its items and discuss it before putting it to a vote.
The date is consistent with previous statements by Finance Committee member Jamal Kojar, who said that the Finance Minister informed the committee that the draft budget would reach Parliament on October 15, in accordance with legal timelines, while the price of oil on which revenue estimates will be based is still not definitively decided.
A Deficit That Could Reach 65 Trillion Dinars
Al-Dulaimi predicted that the deficit in the 2027 budget would reach about 65 trillion Iraqi dinars, a figure that puts the government and parliament before a challenge regarding how to finance spending without increasing pressure on public finances.
She confirmed that the Finance Committee will discuss the procedures and solutions that the Ministry of Finance will propose to deal with the deficit after the project officially reaches Parliament.
These estimates come in conjunction with economic warnings about the continued heavy reliance of the budget on oil revenues, which makes Iraq’s financial situation sensitive to changes in crude oil prices, export volumes, and disruptions that may affect the movement of energy exports.
The Exchange Rate Enters Budget Discussions
One of the most prominent issues revealed by the Finance Committee is the exchange rate of the dollar against the dinar.
Al-Dulaimi said that the committee will discuss the exchange rate issue within the deficit-related solutions, in addition to the measures that will be presented by the Ministry of Finance, noting that there are proposals and solutions at the Ministry that the committee will review after receiving the draft budget.
These statements, in themselves, do not imply a decision to change the official exchange rate; the Ministry of Finance or the relevant monetary authorities have not yet announced a final decision on this matter in the published sources that have been reviewed.
Thus, the exchange rate will be one of the issues that will be discussed when studying the budget, while the nature of the government proposals will become clear after the project and its financial schedules officially reach the House of Representatives.
Employee Salaries Are “Secured”.
Regarding public spending, Al-Dulaimi confirmed that the salaries of state employees are secured, coinciding with talk of increased oil exports and the existence of reserves at the Central Bank that can contribute to supporting financial stability.
The issue of salaries is of particular importance in light of the large operational spending and financial obligations of the state, while the government seeks to prepare a budget that can balance current expenditures, investment projects and the actual ability to generate revenues.
The Price Of Oil Has Not Yet Been Decided.
The price of a barrel of oil adopted in the budget remains one of the most anticipated figures, as Kujer stated in previous remarks that the proposals under consideration ranged between $50 and $65 per barrel, with a difference of opinion regarding the most appropriate price to adopt.
Determining the assumed price of oil is a key factor in calculating revenues and deficits; the higher the assumed price, the more sensitive the budget becomes to any actual downturn in global markets, while adopting a more conservative price provides a greater margin of safety if actual selling prices remain above the estimated price.
All eyes are now on October 15, the expected date for the draft budget to reach Parliament, as the official tables will then reveal the true size of expenditures, revenues, deficit, the assumed oil price, and the mechanisms for financing the financial gap.
The discussions will also reveal more clearly the nature of what the Finance Committee indicated regarding the exchange rate, and whether the matter will be limited to studying its impact on revenues and expenditures, or whether the budget will include new proposals related to fiscal policy.
Between a projected deficit of up to 65 trillion dinars, the issue of the exchange rate, oil prices, salaries and public spending, Iraq’s 2027 budget appears poised to be one of the most sensitive economic issues facing the government and parliament in the coming months. https://mustaqila.com/موازنة-2027-عجز-بـ65-تريليوناً-وسعر-الصرف-ع
Al-Zaydi Presents The Financial Automation Plan To The IMF, And Azour Expresses His Readiness To Provide Support
2026-09-23 | New York – 964 Prime Minister Ali al-Zaidi met in New York on Wednesday (September 23, 2026) with Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, to discuss the repercussions of the regional crisis and its direct impact on oil prices, energy, and global supply chains.
During the meeting, Al-Zaydi affirmed the government’s commitment to restructuring fiscal policy and shifting towards a “program and performance budget” and automating key components within the 2027 budget, while Azour expressed the Fund’s readiness to continue providing support and cooperation to enhance reforms and consolidate economic stability in Iraq.
The media office of Al-Zaidi stated in a statement received by 964 Network that “Prime Minister Ali Faleh Al-Zaidi received in New York, after midnight last Tuesday Baghdad time, the Director of the Middle East and Central Asia Department at the International Monetary Fund/IMF, Mr. Jihad Azour, and his accompanying delegation.”
He added that “the meeting discussed developments in the global economic landscape, the repercussions of the crisis in the region and its impact on markets, prices, supply chains, and inflation rates, as well as its effects on energy consumption and oil prices.”
Al-Zaydi confirmed, according to the statement, that “the government is proceeding with restructuring the basic pillars of fiscal policy in Iraq, through expanding the automation system and gradually moving towards a program and performance budget, within the 2027 budget project.”
For his part, Azour affirmed “the IMF’s readiness to continue cooperating with Iraq, and to strengthen the path of economic and financial reforms, in a way that contributes to consolidating financial and economic stability in Iraq.” https://964media.com/719339/
Al-Zaydi Directs Official Institutions And Governorates To Prepare For The Celebration Of Iraqi Sovereignty Day
2026-09-23 | 964 Prime Minister Ali al-Zaidi directed government institutions to celebrate Sovereignty Day on October 1st by holding a vigil to commemorate the martyrs and victims, and to wear a badge on the chest bearing the map of Iraq or its flag.
The General Secretariat of the Council of Ministers stated in a statement received by Network 964 that “Prime Minister, Mr. Ali Faleh Al-Zaidi, directed all ministries, non-ministerial entities, and governorates to take the necessary measures in accordance with the law, in coordination with the Government Media Cell, regarding the following.”
“First: A moment of silence in governmental and public institutions, to commemorate the martyrs and victims of Iraq as part of the celebration of Iraqi Sovereignty Day.”
Second: Wearing a badge on the chest that represents National Sovereignty Day, for example (a map of Iraq or a map of Iraq in the colors of the Iraqi flag or any other design).
“Third: All governorates should promote the official and popular local celebration of Sovereignty Day through all local government departments and institutions.”
“Fourth: Instructing the relevant authorities to take appropriate measures regarding the matter through popular programs and activities.”
He added that “the Cabinet Affairs and Committees Department in the General Secretariat of the Cabinet stated that the directive came in light of the approaching date of the celebration of Iraqi Sovereignty Day, corresponding to the first of October 2026.” https://964media.com/719356/
