Iraqi lawmaker says 2026 budget may be delayed to 2027

BAGHDAD, Iraq — Iraqi lawmaker Mohammed Biyati said uncertainty continues to surround the shape of the country's 2026 budget, with no clear decision on whether the government will submit a reduced version or postpone the file entirely. Biyati told reporters that the current cabinet, which has not yet filled several vacant ministries, has slowed budget work, adding that a clearer picture may only emerge after the Iraqi parliament's legislative recess ends. Biyati said there is no consensus in parliament on a scaled-down budget proposal, noting that Iraq is going through one of its most difficult fiscal periods since 2003. He said geopolitical tensions in the Persian Gulf and the Strait of Hormuz have affected roughly 90 percent of Iraqi oil exports, complicating the financial outlook. Biyati added that if political and financial difficulties persist, the budget could be delayed to 2027. Oil revenue is the main source of public income in Iraq's federal budgets, financing public salaries, current spending and investment projects, while concerns over energy supply and shipping in regional waterways have grown in recent months.