KRG, Baghdad Resume Talks on Iraq’s 2027 Federal Budget

Kurdistan 11:45 AM - 2026-09-24

The logos of federal and regional governments.

As the new year approaches and preparations begin for drafting and approving Iraq’s 2027 federal budget, talks between the Kurdistan Regional Government (KRG) and the federal government have intensified. The two sides are holding a new meeting to address outstanding financial issues between Erbil and Baghdad.

Salaries and Financial Entitlements as Sovereign Expenditure

The meeting follows a decision by the KRG Council of Ministers during its regular session on Wednesday to instruct the high-level negotiating delegation to continue its efforts on the 2027 budget negotiations.

The Council stressed the need to secure salaries, allowances and financial entitlements for the Region’s civil servants, while also calling for the needs of the Ministry of Peshmerga to be included among sovereign expenditures, on an equal footing with the Iraqi Ministry of Defence.

It also highlighted the important role of Kurdish MPs and parliamentary blocs in the Iraqi parliament in supporting the Region’s demands throughout the drafting, discussion and approval of the 2027 budget.

Kurdistan Region’s Share and the Peshmerga File

Key issues under discussion between Erbil and Baghdad include the Kurdistan Region’s share of the federal budget, the settlement of salaries and financial entitlements for the Ministry of Peshmerga, and the formalisation of employment contracts for staff, including the permanent appointment of employees currently working under three-year contracts.

The talks are aimed at reaching agreements on these financial matters and ensuring that the Region’s needs and entitlements are reflected in the draft budget for the coming year.

Baghdad Prepares 2027 Budget

Meanwhile, preparations are under way in Baghdad at both government and parliamentary levels to draft the 2027 federal budget bill, ahead of its submission to the Iraqi parliament for debate and a vote.

The relevant authorities are seeking to complete the draft as soon as possible, amid continued discussions over the Kurdistan Region’s demands and the financial obligations between the federal government and the Region.

No Federal Budget Approved for 2026

The Iraqi parliament previously approved a three-year federal budget covering 2023, 2024 and 2025. However, no federal budget was approved for 2026, as the country was focused on the process of forming a new government.

With preparations for the 2027 budget now under way, the government and parliament are stepping up efforts to draft and approve the legislation, while the KRG continues negotiations with Baghdad to secure the inclusion of the Region’s financial rights and entitlements in the upcoming budget.


PUKMEDIA