Baghdad: The head of the Parliamentary Finance Committee, Uday Awad, confirmed on Monday that Parliament is moving toward passing the 2026 Borrowing and Grants Bill, in light of the absence of a general budget law.

According to Iraqi News Agency, Awad stated that the Parliamentary Finance Committee and Parliament are taking steps to enact the draft 2026 Borrowing and Grants Law due to the lack of a state budget. The absence of a legal framework for borrowing has necessitated the proposal of this legislation, which has been discussed with the Minister of Finance, Falih al-Sari, and other officials. The process of drafting the law is currently underway.

Awad further elaborated that Finance Minister Falih al-Sari will be submitting the proposal to the Finance Committee for the adoption of the legislation. He clarified that domestic borrowing will be financed by the Central Bank, while external borrowing will involve other countries or the World Bank.

He also indicated that the law will authorize the government to seek loans from various sources, including the Central Bank of Iraq and other nations. The legislation aims to empower the Council of Ministers and the Minister of Finance with the authority to borrow funds, thereby ensuring the payment of salaries and the continuation of state operations.