KRG Aims to Increase 2027 Budget Share to 14.1% Based on Census Data
At a glance
- KRG seeks a 14.1% federal budget share.
- Demand relies on new census data.
- Total funding requested is 25 trillion Dinars.
Channel8 has learned that as the Kurdistan Regional Government (KRG) commences its preparations for the 2027 budget, it aims to increase the Region's federal allocation from 12.6% to 14.1%.
Key Statements and Focus Areas
- Amid preparations for a revised 2027 budget structure, Erbil emphasizing equal funding for provincial investment and a review of federal "sovereign" expenditures.
- The KRG intends to normalize employment for 100,000 individuals, including 81,000 contract workers, and has projected a 1.15 trillion Dinar cost to unfreeze civil service promotions suspended since 2016.
The calculated steps leverage new data from the general population census and extends far beyond public salaries alone.
The proposal incorporates the resumption of civil service employee promotions—which have been frozen since 2016—alongside vital funding for oil company expenses and provincial development. To finalize and secure these crucial demands, a technical delegation is scheduled to travel to Baghdad next month.
Behind the scenes, the KRG Ministries of Finance and Planning are formally requesting this bump to a 14.1% share of the Iraqi general budget.
Financially, the ministries are seeking to secure permanent employment slots for 100,000 individuals, a move that includes transitioning 81,000 contract employees and teachers into permanent civil service roles.
According to internal projections, the financial allocation required to unfreeze civil service promotions is estimated at 1 trillion and 150 billion Dinars. Meanwhile, the baseline annual expenditure for regular employee salaries in the draft budget is being set at 14 trillion Dinars.
In total, the KRG is demanding 25 trillion Dinars for the Region's full share, a figure meant to encompass investments, petrodollar allocations, and oil company operational costs.
To lock these numbers in, KRG ministries have been directed to submit their estimated revenue and expenditure reports by the end of this week. This urgency comes as Iraq prepares a brand-new classification system for revenues and expenditures in the 2027 draft budget law, which will differ significantly from previous years.
Even though the Kurdistan Region's budget share has not been fully disbursed since 2014, Baghdad is moving forward next year by setting a general classification for data. In response, Kurdistan is firmly emphasizing that federal "sovereign and governing" expenditures must undergo a thorough review.
Erbil insists that the budget share for Kurdistan's provinces in development and investment must be provided on an equal footing with all other Iraqi governorates.
FYI
Following directives from the Council of Ministers, Finance and Economy Minister Awat Sheikh Janab chaired a high-level meeting on Sunday to secure the Kurdistan Region's financial rights in Iraq's upcoming 2027 Federal Budget Bill.
After deeply analyzing the region’s constitutional entitlements and new census data, officials launched an immediate initiative to hold targeted meetings with all ministries to ensure Erbil's demands are seamlessly integrated into the federal budget.
This mobilization builds on months of behind-the-scenes work by the Ministry of Finance to project necessary funding for salaries, operations, and investments.
Crucially, the region's strategy focuses on locking in new civil service positions and finally restoring unpaid employee entitlements that were previously frozen by persistent budget shortages and the economic crisis.
Speaking to Channel8 earlier, Dr. Amanj Raheem, Secretary of the KRG Council of Ministers, called on Baghdad to grant the Kurdistan Region its full 14% share of refined oil, while urging local energy officials to dismantle market monopolies to resolve the region's ongoing fuel crisis.
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