Iraq to face budget challenge amid falling oil revenues

Amid declining oil revenues and rising spending demands, Iraq’s next government is bound to encounter challenges drafting the 2026 federal budget, with experts warning that authorities may resort to austerity measures or continue temporary monthly spending mechanisms.

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Iraq risking stark economic losses amid budget delay: PM advisor

Iraqi officials and lawmakers warned that continued delays in approving the 2026 federal budget could deepen economic losses, stall investment projects, and increase uncertainty in the market.

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Iraq’s political deadlock delays budget drafting, raises concerns over services and salaries

The continued delay in forming Iraq’s government and resolving the presidency and premiership have stalled the constitutional process of approving the federal budget, lawmakers said.

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KRG to bind Baghdad to census results over new budget

"The Council of Ministers is following up to ensure the federal government adheres to these census results for the purpose of determining the Kurdistan Region's share of the budget."

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Erbil to talk budget with Baghdad after federal government formation: Spokesperson

"We will not discuss the subject of salaries with the federal government, we will talk about the budget, what the Kurdistan Region's share of the budget will be," KRG spokesperson Peshawa Hawramani asserted. "We will not let go of the seven salaries that have gone unpaid over the last three years."

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Iraq says no liquidity crisis following spending cuts

“These measures come in light of fluctuating oil prices and increased spending requirements,” Mazhar Mohammed Salih, financial advisor to Sudani, told state media. 

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Iraq's 2026 budget to be ‘difficult and complex’: MP

Iraq is preparing for a challenging 2026 budget after ending 2025 without approving a spending plan and facing falling oil prices. Lawmakers and experts told The New Region that the government must control spending, protect salaries, and diversify revenues to avoid liquidity problems next year.

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Iraq’s public sector salaries at risk amid falling oil prices

An Iraqi economist warned that public sector salaries could face serious risk if oil prices continue to fall, as Iraq remains heavily dependent on oil revenues.

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Iraq preparing 2026 budget before completing 2025 accounts 'an unsound step': Lawmaker

Moeen al-Kadhimi, a member of Iraq’s Parliamentary Finance Committee, told The New Region that "talking about a new budget is unrealistic when there are no final accounts for this year."

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