Former parliamentary Finance Committee member Muhammad Ibrahim said Iraq’s proposed 2027 budget contains inflated figures. He noted that the 2025 budget data stood at around 142 trillion dinars and could have been used as a basis for preparing next year’s budget.
Speaking to dinaropinions.com, Ibrahim said the government had turned to devaluing the Iraqi dinar against the US dollar to cover the gap between government spending and revenue. He explained that a weaker dinar would generate additional funds for the government through the exchange rate difference.
However, Ibrahim said this approach also highlights the country’s financial deficit. He argued that the government has failed to increase revenues by finding alternative sources of income that could help bring spending and revenue closer to balance.
He added that reports suggest Iraq’s 2027 budget could reach 217 trillion dinars, which he described as an extremely exaggerated figure. In his view, the government should have relied on the 2025 figures of around 142 trillion dinars to prepare a more realistic budget.