Baghdad: The Parliamentary Finance Committee, led by MP Uday Awad, convened a crucial meeting with the Budget Department to discuss the management of public funds and the mechanisms for preparing the 2027 budget. The meeting, held at the committee’s headquarters, was attended by the Director General of the Budget Department, Milad Ziad Abdul-Mawla, alongside senior staff from the Budget Preparation and Accounting departments.

According to National Iraqi News Agency, the meeting focused on the structure of the state’s general budget and reform measures for the upcoming 2027 budget. The committee chairman highlighted the necessity of maximizing public revenues, strengthening budget resources, and reducing the state’s dependence on oil revenues. Emphasis was placed on developing budget preparation mechanisms to ensure the accurate estimation of revenues and expenditures.

Director General Milad Ziad Abdul-Mawla outlined the ongoing implementation of financial reform, which includes transitioning to a program and performance budget while continuing with the line item budget. This dual approach is designed to prevent disruptions in budget preparation and accounting classifications. She noted that certain governorates have already applied this model and that the 2027 budget will further incorporate a mandatory annex for planning and prioritization, separating operational and investment budgets, and ensuring spending units link expenditures and projects to manageable tables.

The discussion also covered the Budget Department’s plan to manage public funds efficiently, reduce current expenditures, and adhere to standards in budget preparation. The department is committed to Cabinet decisions aimed at maximizing public revenues and minimizing expenditures. Proposals to amend fee and wage amounts were reviewed, with an examination of actual revenue collection rates and a diagnosis of the reasons behind any declines. The meeting also explored setting spending ceilings and including projects based on the needs of spending units, aligning with the program and performance budget transition to aid in developing the 2027 budget.

Further topics included the digital transformation of financial systems, the adoption of electronic payment methods for government revenue collection, and the creation of an electronic platform linking the Budget Department with spending units. This platform aims to enhance the efficiency of public fund management and improve transparency and financial oversight.

Committee members also raised questions regarding the Financial Management Law, standards used by the Ministry of Finance in budget preparation, project financing mechanisms, sovereign guarantees, and the financial implications of various financial decisions and procedures.