Parliamentary Estimate: 2027 Budget Could Reach IQD 200 Trillion

The Parliamentary Finance Committee has projected that the 2027 budget could reach approximately 200 trillion Iraqi dinars, with 150 trillion allocated for the line-item budget and 50 trillion for programs and projects. This estimate aligns with a government initiative to transition towards program-based budgeting, aiming to link public expenditure directly to specific objectives and outcomes. Jamal Kocher, a member of the Parliamentary Finance Committee, stated that the program budget, which the government plans to adopt, represents a qualitative leap in public spending management. He explained this shift would transform ministerial activities into clear, defined programs, such as staff training and service development, moving beyond mere requests for financial allocations without specified tangible outputs. Kocher added that each ministry would be obliged to establish specific plans and objectives, thereby facilitating expenditure monitoring and holding implementing bodies accountable for achieved results. He indicated that this mechanism is considered more advanced and effective than the previously used line-item budgeting. Kocher warned that the success of this experience largely depends on proper implementation and effective oversight, noting its potential to become an avenue for corruption if sound execution is absent. Regarding the timeline, he pointed out that the government intends to submit the draft 2027 budget to the Council of Representatives next October. He clarified that this timing, if adhered to, would enable the budget's approval by the beginning of the fiscal year for the first time in years. In a related context concerning the country's financial situation, Kocher affirmed the government is exploring several options to counter any potential decline in oil revenues. These include borrowing and developing land oil export lines via Baniyas, Aqaba, and Ceyhan routes, to serve as strategic alternatives should maritime exports through the Strait of Hormuz face disruption. Concerning funds recovered from corruption cases, Kocher clarified they would be deposited into a special fund established by the government for transparent management and preservation, ensuring clarity in their future disposition.