Dilan Ghafoor, spokeswoman for the Patriotic Union of Kurdistan (PUK) bloc in the Iraqi Parliament, said that the Finance Ministry has introduced six economic reform bills aimed at increasing revenue, confirming that the government is actively working on the budget bill. 

Citing officials and lawmakers, Channel8 recently reported that Iraq will bypass a formal 2026 budget law due to political delays, relying on a 1/12th monthly spending rule to manage public sector salaries. 

This approach shifts focus toward a comprehensive overhaul for the upcoming 2027 fiscal budget. 

The temporary, risk-carrying measure comes amid a growing deficit driven by falling oil prices and export disruptions.

Ministry Submits Six Reform Bills to Fight Severe Revenue Deficit 

Lawmaker Dilan Ghafoor said in a statement on Saturday that “Iraq is in a difficult financial situation as revenues have significantly decreased.” 

Ghafoor noted that during last week’s visit by the Minister of Finance to the Parliamentary Finance Committee, the minister provided a detailed overview of the economic situation, the drop in revenue, and the government’s steps to increase state income. 

“Due to the halt in oil sales and the closure of the Strait of Hormuz, the country's primary source of revenue—oil sales—has been heavily disrupted. The government is working to diversify its income sources, and we in parliament fully support these efforts,” she added. 

She highlighted that the Ministry of Finance has submitted six drafted bills to the Finance Committee, adding that these measures “aim to increase revenue through investment reforms, the utilization of agricultural land, the sale of Ministry of Finance properties, and employee leave programs that allow transfers to the private sector to reduce the financial pressure on public wage budgets.”

Iraq Eyes State Asset Sales and Shift to Performance-Based Budgeting 

The lawmaker also said that the debt-burdened Iraqi government is seeking viable repayment solutions, including the sale of state-owned properties and assets. 

Regarding the budget bill, Ghafoor confirmed the government is actively working on the draft, noting that next year's budget law will transition from a traditional line-item format to a performance-based program budget. 

This new budgeting methodology will first be implemented within the Ministry of Electricity, followed by provincial rollouts in the Salahuddin and Diwaniyah governorates.