KRG Delegation Seeks 29 Trillion Dinars For 2027 Federal Budget

At a Glance:

A senior KRG financial delegation submitted a 29 trillion Iraqi dinar proposal to federal officials in Baghdad to secure the Region’s share in the 2027 budget bill.
Over 23.5 trillion IQD is requested for operational spending, targeting public payrolls, unfreezing civil service promotions, and funding pensions.
The proposal demands permanent civil service status for over 60,000 contract teachers and public employees.
Joint technical sessions at the Federal Ministry of Finance are applying new outcome-based budgeting standards to lock in regional allocations.

A senior financial delegation from the Kurdistan Regional Government (KRG) has arrived in Baghdad to join federal finance directors in drafting Iraq's 2027 federal budget bill, presenting a 29 trillion Iraqi dinar proposal to lock in regional entitlements. According to details obtained by Channel8, negotiations at the Federal Ministry of Finance focus on securing 23.5 trillion IQD in operational spending alongside 5.5 trillion IQD for regional investment projects, unfreezing civil service promotions, and establishing permanent cadres for over 60,000 contract workers.

Key Statements and Focus Area:

KRG Ministry of Finance and Economy Official Statement:
"This intensive preparation will serve as a strong foundation for a fundamental resolution to outstanding financial issues. Our delegation in Baghdad is working alongside federal counterparts to ensure the 2027 draft fully secures public salaries, restores civil service promotions, and incorporates contract staff into permanent civil service positions under federal law."

Key Financial Figures in KRG’s 2027 Budget Proposal

Expenditure Category	Financial Allocation (IQD)	Primary Policy Objective
Total Requested Share	29.0 Trillion IQD	Represents KRG's target allocation in the 2027 federal draft
Operational Expenditure	23.5 Trillion IQD	Covers public payrolls, promotions, and retiree compensations
Capital & Investment Budget	5.5 Trillion IQD	Funds regional infrastructure and development projects
Contract Staff Integration	>60,000 Personnel	Grants permanent state employee status to temporary workers
Graduate Appointments	16,000 Cadres	Hires top university graduates and medical professionals

Negotiating Permanent Employment and Salary Upgrades

A core priority for the KRG technical team in Baghdad is ending years of temporary status for non-permanent staff. The 29 trillion IQD proposal formally requests permanent positions for more than 60,000 contract teachers and public employees who have been funded through regional domestic revenues.Additionally, the package allocates funds to appoint 16,000 top university graduates and healthcare professionals, while unfreezing civil service promotions that have remained suspended due to past budget impasses.

Performance Budgeting and Military Equalization

The 2027 drafting sessions mark a shift toward a "program-and-performance" budgeting model, replacing traditional line-item accounting with outcome-based spending metrics. Beyond civil service payrolls, the joint KRG-federal technical committee is writing specific legal clauses to secure operational funding for the Peshmerga and equalize financial allowances for martyrs' families and political prisoners in accordance with federal standards.

FYI

By presenting a comprehensive 29 trillion IQD framework early in Baghdad's drafting cycle, Erbil aims to prevent the late-stage fiscal disputes that stalled past budgets. Codifying permanent cadres and operational funding within a performance-based system offers a structural path toward long-term financial stability between the federal government and the Kurdistan Region.