Council of Ministers Finally Approves 2026 Federal Budget Bill and Directs Disbursement of Development Allocations

The Iraqi Council of Ministers, in its extraordinary session held today, Friday, chaired by Prime Minister Mohammed Shia' al-Sudani, finally approved the draft federal budget law for the current fiscal year 2026. The session witnessed extensive discussions regarding the mechanism for distributing financial allocations among governorates, where consensus was reached on giving top priority to stalled projects in vital infrastructure sectors such as electricity, water, roads, and bridges. The official government spokesman stated that development allocations will enter into actual implementation starting next week, affirming that the government will not be lenient with any government entity that delays in paying the dues of contractors and implementing companies. He explained that the budget included a qualitative increase in allocations for the health and education sectors by up to 12% compared to the previous budget, aimed at raising the level of services provided to citizens. The budget also included a provision dedicated to supporting food security and enhancing the strategic stock of grains and basic materials. The spokesman referred to the Council's approval to establish a national emergency fund worth 500 billion dinars to address natural disasters and sudden crises. He concluded his statement by affirming that this budget reflects a clear vision of the government in achieving sustainable development and combating financial and administrative corruption.