Economic Challenges and Time Constraints Prompt Government to Bypass 2026 Budget in Favor of 2027

Informed government sources have revealed an official shift towards preparing the general budget draft for 2027, bypassing the 2026 budget due to complex technical and financial difficulties. The sources explained that the passing of a significant portion of the current fiscal year has made enacting an independent budget impractical, prompting relevant authorities to establish financial foundations and estimates that align with the current economic reality. This decision comes amidst growing challenges facing Iraq, heavily influenced by regional developments and their direct impact on energy markets and international trade. Notably, the suspension of certain oil exports due to geopolitical tensions in the region has imposed additional pressures on public revenues. The government is currently working on formulating realistic estimates to ensure the sustainability of public spending and secure essential obligations, such as salaries, services, and vital projects. Furthermore, efforts are underway to reassess financial priorities and develop more flexible strategies for the coming years to mitigate the severe reliance on oil revenues.