At a Glance

• A high-level KRG delegation arrived in Baghdad on Wednesday, September 9, 2026.
• The delegation commenced direct coordination with federal ministries to integrate regional rights and financial dues into the drafting phase of the 2027 federal budget.
• Key discussions focused on securing fair budget shares, investment project allocations based on recent census data, international loan distributions, and oil export frameworks.
• KRG officials strongly emphasized the federal government's legal responsibility to guarantee and regularly disburse public sector salaries for regional employees on par with counterparts across Iraq.

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The Kurdistan Regional Caretaker Government (KRG) delegation launched a comprehensive series of meetings in Baghdad, engaging directly with federal leadership to establish a transparent, constitutional framework for financial relations in the upcoming 2027 federal budget draft.

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Key Meetings and Sector Focus

• Ministry of Finance: In discussions with Federal Finance Minister and Acting Planning Minister Faleh Al-Sari, the KRG delegation welcomed direct participation in the draft's preliminary formulation. Both sides agreed on the necessity of embedding fair, constitutionally grounded financial entitlements to stabilize intergovernmental fiscal ties, with the federal finance minister assuring equitable treatment under Iraqi law.
• Ministry of Planning: Joint sessions with federal planning deputies and investment directors addressed regional development funds, petrodollar allocations, and investment shares proportionate to the latest general population census data. The KRG also requested a proportional share of international loans, grants, and foreign assistance, given that the region shares repayment obligations and associated interest. Both ministries agreed to maintain rigorous technical and legal coordination.
• Ministry of Oil: Meetings with the federal oil minister and sector officials reviewed 2027 petroleum provisions, including projected export volumes from regional fields, crude benchmark pricing, and domestic consumption quotas. The KRG delegation reaffirmed its commitment to handing over regional crude production to the national SOMO company for international marketing, ensuring that all proceeds flow directly to the federal treasury.

The talks concluded with a mutual consensus on resolving outstanding fiscal dossiers through continuous dialogue. Throughout the engagements, the KRG delegation stressed that Baghdad bears a binding legal and moral duty to safeguard public sector payrolls, ensuring that civil servants and public employees in the Kurdistan Region receive their financial dues without disruption, exactly like their peers across other Iraqi provinces.

FYI

Intergovernmental fiscal coordination between Baghdad and Erbil is governed by constitutional revenue-sharing principles and annual federal budget legislation, dictating how public expenditures, oil revenues, and development investments are distributed nationwide.

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