Baghdad (IraqiNews.com) – The Parliamentary Finance Committee announced on Sunday, June 7, 2026, that the enactment of a formal 2026 federal budget has become highly improbable. Parliamentary officials stated that legislative priorities have shifted toward finalizing the executive government’s broader operational program and completing the remaining ministerial cabinet positions.
Despite the budgetary absence, the committee assured the public that the government possesses extensive financial mechanisms to manage fiscal deficits and secure state salaries through domestic or international borrowing, as well as via direct coordination with the Central Bank of Iraq (CBI).
The committee’s stabilizing remarks followed alarming public disclosures made just hours prior by Foreign Minister Fuad Hussein. The minister openly revealed that the state has resorted to printing 25 trillion IQD to combat severe liquid cash shortages. Hussein warned of an impending systemic financial crisis should the maritime blockades paralyzing the Strait of Hormuz persist, emphasizing that Iraq must rapidly deepen its diplomatic ties with Arabian Gulf states and Western nations to secure urgent international financial assistance.
Key Takeaways from the Finance Committee’s Briefing
| Issue | Current Status & Government Position |
|---|---|
| 2026 Federal Budget | Postponed/Canceled: Parliament will bypass 2026 to focus entirely on drafting the 2027 fiscal budget. |
| Public Sector Payrolls | Secured: Executive and legislative branches maintain a unified consensus that public salaries will remain uninterrupted. |
| Deficit Mitigation | Alternative Financing: Deficits will be plugged using internal loans, sovereign bonds, foreign credit lines, and central bank tools. |
| Emergency Legislation | No Current Alternative: A stopgap funding bill (similar to the previous Food Security Law) has not yet been proposed. |
Finance Committee member Rebwar Karim told the official state newspaper that the absence of a budget halfway through the fiscal year is directly linked to administrative prerequisites, noting that Prime Minister Ali Falih al-Zaidi’s cabinet is still finalizing its structural formation. Karim noted that Parliament has already granted the Prime Minister all necessary executive powers and emergency financial mandates to keep the state apparatus operational without a finalized budget law.
Looking forward, Karim indicated that the economic outlook will become clearer during the formulation of the 2027 budget. Future fiscal planning will be better equipped to absorb the ongoing geopolitical shocks of the Strait of Hormuz crisis, oil price fluctuations, and state revenue diversification.
He highlighted that Iraq’s upcoming financial framework will rely heavily on newly expanded non-oil revenue streams, driven primarily by the strict enforcement of the Customs Tariff Law and the full nationwide implementation of the automated ASYCUDA customs system, which are expected to significantly boost and stabilize the state’s treasury inflows.
