Iraq’s Ministerial Council for the Economy approved the draft 2027 federal budget on Sunday and referred it to the Council of Ministers, according to a Finance Ministry document.
Earlier today, the Finance Ministry said it had submitted the draft to the economic council after completing its preparation.
The ministry said the Higher Committee for Budget Preparation, overseen by Finance Minister Faleh Al-Sari, had held a series of meetings with representatives of federal ministries, the Kurdistan Region, and provincial governments, while also consulting Iraqi and foreign financial experts.
Al-Sari said the ministry completed the draft within the required timeframe. The proposal introduces the gradual use of program and performance budgeting in the Electricity Ministry and the provinces of Al-Diwaniyah and Saladin, linking allocations more closely to objectives, measurable results, and the impact of public spending.
The approach is intended to be expanded gradually across other state institutions.
According to the ministry, the draft places particular emphasis on increasing non-oil revenues and strengthening fiscal discipline.
Al-Sari said last Sunday that the draft also includes a provision allowing contract employees to be transferred to permanent government positions.
