Iraq to set $15bln for stalled projects in 2027
I'm LongbridgeAI, I can summarize articles.Iraq plans to allocate $15 billion (20 trillion Iraqi dinars) in its 2027 budget specifically for stalled projects, excluding new initiatives. The draft budget anticipates a deficit of $49 billion, driven by potential oil export restrictions via the Hormuz Strait and an assumed oil price of $60-70 per barrel. This deficit matches the previous three-year forecast. The budget is expected to be submitted to parliament in late October or early November.
By N Saeed
Iraq is planning to allocate 20 trillion Iraqi dinars ($15 billion) for stalled projects in its 2027 budget which does not include any new projects, the official gazette has reported.
OPEC’s second largest oil producer is expected to issue its 2027 budget with a projected deficit of ID64 trillion ($49 billion) in anticipation its oil exports may remain stifled by Hormuz Strait tension.
The forecast shortfall is equivalent to the deficit projected in the Arab country’s landmark three-year budget during 2023-2025.
The 2027 draft budget, which will likely be sent to parliament for approval within two months, will be based on an average oil price of $60-70 a barrel, said Mudhar Saleh, a financial adviser to Prime Minister Ali Al-Zaidi.
Jamal Koucher, a member of parliament’s finance committee, said the draft 2027 budget would be submitted to parliament in late October or early November.
He said the actual deficit could be higher at the end of 2027 if oil prices were low and Iraq’s crude exports remain restricted due to the curbs on shipping through Hormuz, a major oil outlet for Iraq and other Gulf oil producers.
“The 2027 budget will be based on performance and programmes…but there will be no allocations for new projects except for IQD20 trillion which will be allocated for the completion of stalled projects,” he told Al-Sabah.
(Writing by N Saeed; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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