2027 Budget Under Funding Pressure
The article discusses the features of Iraq's proposed Federal General Budget for 2027, highlighting the significant challenges faced by the government regarding spending levels and fiscal deficit, which may reach around 50 trillion dinars. The draft budget is estimated to be between 200 and 217 trillion dinars. Key factors in budget calculations include an assumed oil price of $58 per barrel and the export of four million barrels daily. Additionally, there is tension between the need to meet employment demands, particularly providing 100,000 employment contracts and regularizing existing contracts, and the necessity to control spending, reduce reliance on borrowing, and conserve cash reserves. The budget is expected to implement a "Performance and Program Budgeting" model to improve resource management. It is also crucial to realistically assess both oil and non-oil revenues to address the growing deficit, which may compel the government to resort to continuous borrowing. Furthermore, the debate reflects the society's and MPs' concern for the rights of the governorates, especially Basra, regarding their financial and service entitlements. There is a need to tighten expenses and strike a balance between economic reforms, expanding employment opportunities, and attracting investments.
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