At a Glance

• KRG submits 2027 draft budget to Baghdad.
• Proposal targets full salary and promotion allocations.
• Erbil seeks a 14.1% national budget share.

The Kurdistan Regional Government has officially finalized and submitted its comprehensive 2027 federal budget proposal to Baghdad, fully incorporating critical financial entitlements, civil service promotions, and public salaries.

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Key State and Focus Areas

• The KRG Ministry of Finance and Economy stressed that “this intensive and meticulous preparation will serve as a strong foundation for a fundamental resolution to the outstanding financial issues and will end the obstacles hindering the Region's financial entitlements.”
• The ministry urged “all Kurdish representatives and parliamentary blocs in the Iraqi Council of Representatives to unite and take a cohesive stance in defending these shares. This will ensure they are firmly established in the budget law during parliamentary debates, securing the rightful share of the Region's citizens as quickly as possible.”

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Following a month of intensive financial reviews, the KRG Ministry of Finance and Economy announced Thursday that it has finalized the Region’s share for the 2027 Federal Draft Budget Law.

The proposal has been submitted to the Federal Ministry of Finance in Baghdad in both digital and physical formats.

Minister Awat Janab Noori “expressed his gratitude and appreciation to all committee members and the staff of the General Directorate of Budget and Accounting within our ministry.”

He also thanked the KRG Council of Ministers, regional departments, and the Federal Ministry of Finance for their cooperation in aligning the process with Iraq’s digital budget system.

The ministry expressed hope that federal entities will approach the Region's budget share "with the same spirit of responsibility and commitment" to protecting constitutional rights.

The draft precisely incorporates all KRG financial entitlements and constitutional demands, fully securing salaries for public servants, military personnel, retirees, vulnerable low-income families, and martyrs' families.

It restores long-suspended civil service promotions, grants permanent contracts to temporary teachers, and funds new hires for top graduates, postgraduates, and healthcare professionals.

Peshmerga entitlements and regional pensions are fully aligned with the Iraqi federal system, ensuring retirees can recover all previous financial claims.

The proposal allocates a dedicated investment budget for public service infrastructure projects while introducing a permanent solution for payroll beneficiaries facing biometric UPN registration issues.

Furthermore, it secures critical healthcare funding for medical supplies and aligns financial aid for individuals with special needs directly with Baghdad's standards.

FYI

The Kurdistan Region's share of Iraq's federal budget has remained a major point of political and economic dispute between Erbil and Baghdad since 2014, with both governments engaged in continuous negotiations to resolve ongoing disagreements over public sector salaries, operational funding, investment spending, and broader national revenue-sharing mechanisms.

Kurdistan has initiated preparations for Iraq's 2027 federal budget with the aim of targeting funding for salaries, operational costs, and investments based on population census data. 

KRG officials are seeking to secure a 14.1% share of the national budget, aiming for approximately 25 trillion Iraqi Dinars. 

Concurrently, the Iraqi Parliamentary Finance Committee is developing a 2027 budget framework that includes a hybrid format, merging traditional line-items with mandatory performance tracking to reduce oil reliance. 

Due to a 2026 budget freeze, the Iraqi government is operating on a 1/12th rule and exploring emergency legislation to handle a liquidity crisis.

Iraqi Prime Minister Ali Faleh al- Zaidi announced today that the government will soon submit a draft budget to parliament designed to serve as a strategic roadmap for the future of Iraq's economy.

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