Iraq sets 2027 budget oil price assumption at $70 a barrel

BAGHDAD, Iraq — Iraq's government is preparing to send its draft 2027 federal budget to parliament, with revenue projections based on a hypothetical oil price of $60 to $70 a barrel, the Prime Minister's economic adviser Mazhar Mohammed Salih said. The Ministry of Finance is coordinating the estimates with the Ministry of Planning. Salih said the draft budget will be presented to the Council of Ministers' economic committee in September before moving to the full cabinet and then formally to parliament. He added that regional tensions are increasing pressure on public spending and that an additional budget could be sought in mid-2027 if conditions improve. Parliamentary Finance Committee member Jamal Kocher said the draft is expected to reach parliament between late October and early November. He warned that falling oil prices and limited exports could push the actual deficit above earlier estimates, and that increasing oil exports through alternative channels would not be enough to close the expected gap. Kocher added that the 2027 budget will expand program and performance budgeting across several ministries and provinces. Investment allocations will be limited to roughly 20 trillion dinars, directed only toward completing stalled projects, he said. Budget deficit estimates, according to Salih, may be based on the 64 trillion dinars figure used in the three-year budget.