Iraq Budget for 2026 Could Be Deferred to 2027

As the first months of the year draw to a close, the Iraqi Parliament’s oil and natural resources committee has identified the four main components of this year’s budget, while debate continues over whether the 2026 budget law could be postponed to 2027. The issue carries weight for economic planning as the budget is increasingly being used to soften volatility after the development described as the 'Huberz shock.' Prime Minister’s financial adviser Masis Muhammad Salih said the Ministry of Finance is carefully managing short-term deficit conditions in line with the relevant provisions of the Federal Financial Management Law. He said the current budget has begun to serve as a mechanism to cushion economic fluctuations. The discussion comes as Iraq continues to navigate fiscal pressures and budget timing issues that affect state spending and administrative planning. The parliament committee’s review of the budget’s core elements underscores the institutional importance of the process as the government seeks to maintain financial stability.