Iraq 2027 Budget Unveiled with IQD 217 Trillion Draft, 50 Trillion Deficit, and New Dinar Exchange Rate
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The Arab Post
- . October 8, 2026
- . Update: October 8, 2026 4:18 pm
Today the Iraqi Parliamentary Finance Committee officially approved the giant Iraq 2027 budget, which includes an amount of IQD 217 trillion draft (around $165.6 billion) to finance the operations of the state. After top-level talks with Finance Minister Faleh Al Sari, lawmakers said this historic spending plan will also have a budget deficit of 50 trillion.
The key point for the domestic markets and the investors from abroad is the huge change in the exchange rate of the national currency in the newly proposed fiscal framework. The government is pursuing a policy that continues to devalue the currency in order to buy more oil at lower prices for the state’s debt obligations.The government is actively devaluing the currency to make state oil revenues last longer when paying its public-sector bills.
Overhauling the Dinar Exchange Rate and Energy Projections
The government will officially establish the exchange rate of the dinar to the dollar at 1,500 IQD per dollar, official statements verified by Qatar News Agency (QNA) have said. This is a considerable change from the current dinar exchange rate of about 1,300 IQD.
The core of this bold IQD 217 trillion draft is on calculated energy exports. According to Investing.com, the fiscal plan is an optimistic estimate of the global price of $58 per barrel. The Iraqi Ministry of Finance expects crude exports to keep at the level of around 4 million bpd, an important aspect of which will be from the Kurdistan Region, to achieve its revenue targets.
Strategies to Manage the Projected 50 Trillion Deficit
As expenditure outstrips expected oil revenues, it’s now Iraq’s key economic problem to cover the 50 trillion deficit. Abbas Hayal, a member of Finance Committee, acknowledged the government is speeding up the transition towards structural reforms to reduce this financial deficit.
The overall focus of discussions this week was on immediate digital transformation, and the full automation of state financial systems. The state plans to significantly boost its non-oil revenues as described by BasNews, by streamlining tax collection procedures. The key to a successful reduction in the national income deficit is to diversify these sources of income, or non-cutting down on key public services.
Securing Public Salaries and Next Legislative Steps – Iraq 2027 budget
In the face of the impending $50 trillion deficit, legislators said they would ensure that the Iraq 2027 budget provides enough money to pay the paychecks of every government worker. Moreover, the draft contains the required funding to turn thousands of temporary state contracts into permanent government jobs, Shafaq News reports.
The complete draft of the IQD 217 trillion is legally supposed to be submitted to the Iraqi full Parliament on October 15th, according to the conditions of the national Financial Management Law. The budget will then be carefully reviewed by lawmakers before being formally approved with regard to the proposed dinar exchange rate, revenues projections and deficit-reduction plans.
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