Iraq Economic News and Points To Ponder Monday Evening 6-8-26
Economic Expert: The Priority Is Not The Strength Of The Dinar, But Securing Financial Liquidity.
Baghdad Today – Baghdad On Saturday (June 6, 2026), economist Ziad Al-Hashemi commented on the statements of the Prime Minister’s advisors regarding the government’s measures to stabilize the value of the Iraqi dinar and maintain its purchasing power, considering that the current timing is not appropriate for this economic discourse.
Al-Hashemi said in a post on social media, which was followed by “Baghdad Today”, that “the Iraqi Prime Minister’s office is talking about the government’s work to stabilize (the value of the Iraqi dinar) and maintain its purchasing power,” indicating that “in general this approach is good and required in principle, but now is not the time to talk about the value of the dinar or its purchasing power.”
He added that "the critical problem now is not the value or strength of the dinar, but rather the availability of the dinar. The government is clearly suffering from a lack of sufficient dinars to sustain its work and pay salaries on time, as a result of the decline in oil revenues to their lowest level."
He pointed out that "the government was required to speak transparently and to tell the people the extent of the problem, what its emergency plan is to deal with the shortage of dinar liquidity in its treasury, and what its procedures are to provide the liquidity required to feed public finances during this month and the coming months."
The economist explained: “As for talking about the value of the dinar, its purchasing power, and the inflation rate, this can be postponed to the future and after overcoming the current suffocating financial crisis that complicates the work of the Iraqi government and prevents it from performing its financial duties as it should,” stressing that “such statements about the value of the dinar are appropriate for normal conditions and not in an exceptional emergency situation in which the government is suffering from a shortage of dinars.” https://baghdadtoday.news/300815-.html
Saleh's Appearance: The 2027 Budget Enhances Fiscal Sustainability And Supports Economic Reform.
Time: 2026/06/08 {Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed on Monday that the 2027 budget will enhance financial sustainability and support economic reform, noting that government spending continues in accordance with the Financial Management Law despite the delay in approving the budget.
Saleh said in a press statement: “Iraqi financial policy is still being managed in accordance with the provisions of the amended Federal Financial Management Law No. (6) of 2019, particularly Article (13) thereof, which regulates the mechanisms of public spending in the event of a delay in the approval of the Federal General Budget Law,” noting that “the aforementioned article allowed the continuation of the work of state institutions by granting the Minister of Finance the authority to authorize ministries and entities not affiliated with a ministry to spend at a rate of (1/12) monthly of the total actual current expenditures for the previous fiscal year after excluding non-recurring expenditures, until the approval of the Federal General Budget.”
He added that “this mechanism contributed to ensuring the financing of the state’s basic obligations, foremost among them salaries, wages, pensions, social protection and welfare benefits, as well as the operational expenses necessary to continue providing public services,” explaining that “the same article allowed for the continuation of financing ongoing investment projects based on actual completion rates or completed equipment, provided that cash liquidity and expected allocations are available within the subsequent budget project.”
Saleh explained that “Iraqi public finances faced exceptional challenges during 2026 as a result of geopolitical and regional developments and the accompanying disruptions in global energy markets, supply chains and international trade, which directly affected oil revenues, which represent the main source of public revenues,” stressing that “these changes imposed increasing pressure on the government’s financial position and its ability to finance operational and investment spending, which prompted the government and the Ministry of Finance to move towards preparing the draft federal general budget for 2027 according to a reformist perspective aimed at maintaining financial sustainability and macroeconomic stability.”
He pointed out that "the anticipated budget will focus on enhancing the efficiency of public resource management and rationalizing operational spending, protecting social spending related to the most vulnerable groups, as well as giving priority to investment projects with high economic and developmental feasibility," noting that "among the budget's priorities is also diversifying sources of public revenues and reducing relative dependence on oil revenues, supporting financial and administrative reform programs and government digitalization, in addition to enhancing the national economy's ability to cope with external shocks and achieve financial stability in the medium and long term."
Saleh affirmed that "these trends are consistent with the objectives of the state's financial strategy and public financial management development programs, as well as the pillars of Iraq's 2035 vision, which aims to build a diversified and sustainable economy capable of achieving comprehensive growth and development and enhancing the resilience of public finances in the face of regional and international changes." https://alforatnews.iq/news/مظهر-صالح-موازنة-2027-تعزز-الاستدامة-المالية-وتدعم-الإصلاح-الاقتصادي
The Prime Minister's Advisor Reveals Details Of The 2027 Budget: It Will Be Reform-Oriented.
economy 2026-06-08 Alsumaria News- Economy: The Prime Minister's financial advisor confirmed Mazhar Muhammad SalihOn Monday, he stated that the 2027 budget will enhance fiscal sustainability and support economic reform, noting that government spending will continue according to Financial Management LawDespite the delay in approving the budget.
Saleh said in a statement to the official news agency, which was followed by Alsumaria News Iraqi fiscal policy is still being managed according to the provisions of Federal Financial Management Act Law No. (6) of 2019, as amended, and in particular Article (13) thereof, which regulates the mechanisms of public spending in the event of a delay in approval Federal General Budget Law
He pointed out that "the aforementioned article allowed the continuation of the work of state institutions by granting the Minister of Finance the authority to authorize ministries and entities not affiliated with a ministry to spend (1/12) monthly from the total actual current expenditures for the previous fiscal year after excluding non-recurring expenditures, until approval Federal General Budget"
He added that "this mechanism has contributed to ensuring the financing of the state's basic obligations, foremost among them salaries, wages, pensions, social protection and welfare benefits, as well as the operational expenses necessary to continue providing services."public services
He explained that "the same article allowed for the continued funding of ongoing investment projects based on actual completion rates or completed equipment, provided that cash liquidity and anticipated allocations were available within the subsequent budget."
Saleh further clarified that "Iraqi public finances faced exceptional challenges during 2026 as a result of geopolitical and regional developments and the accompanying market turmoil."Global Energy International supply chains and trade have been disrupted, directly impacting oil revenues, which are the primary source of public income.
These changes have placed increasing pressure on the government's financial position and its ability to finance operational and investment spending, prompting the government and the Ministry of Finance to prepare the draft budget.Federal General For 2027, according to a reformist perspective aimed at maintaining fiscal sustainability and macroeconomic stability.”
He pointed out that “the anticipated budget will focus on enhancing efficiency.”Resource Management
The budget also prioritizes public spending, rationalizing operational expenditures, protecting social spending related to the most vulnerable groups, and prioritizing investment projects with high economic and developmental feasibility.
He noted that other budget priorities include diversifying public revenue sources, reducing relative dependence on oil revenues, supporting financial and administrative reform programs and government digitalization, and enhancing capacity. national economy To confront external shocks and achieve financial stability in the medium and long term."
The Finance Committee Rules Out Approving The 2026 Budget And Confirms: Salary Payments Will Not Be Affected
Money and Business Economy News – Baghdad The parliamentary finance committee explained that approving the 2026 budget is unlikely given the ongoing work to complete the government program and the cabinet, while stressing that the current priority is securing salaries and addressing the economic challenges facing the government.
Finance Committee member, Ribwar Karim, told the official newspaper, as reported by "Economy News," that "this year's budget will most likely not exist, and work will begin on studying the 2027 budget, stressing that securing salaries will not be affected, and that the government has very large capabilities to address the deficit through internal or external borrowing or by using the Central Bank."
Karim added that "everyone agrees on supporting the government's efforts in securing salaries and reaching the next budget, indicating that things will be clearer in the next budget with regard to the effects of the Strait of Hormuz and oil prices and expanding revenues, especially after the application of the Customs Tariff Law and the ASYCUDA system, which will provide greater diversity in sources of income."
Karim explained that the absence of a budget until the middle of the fiscal year is directly related to the government program, especially since the government is still in the process of completing its formation, and the House of Representatives has granted the Prime Minister the necessary confidence and powers.
He stressed that the Finance Committee is ready to support the government in facing the economic challenges, whether the 2026 budget is presented or not, indicating that any move to legislate an alternative law similar to the Food Security Law has not been proposed yet, and the matter is left to the request of the government and the Prime Minister’s vision for the next stage. https://www.economy-news.net/content.php?id=69946