At a Glance

• A KRG technical and financial delegation is in Baghdad to co-draft the region's share of the 2027 federal budget.
• Oil delivery metrics remain the primary dispute, as Baghdad demands 400,000 barrels daily while the KRG maintains its capacity is limited to roughly 260,000–270,000 barrels.
• The delegation is pushing to secure 29 trillion IQD in regional entitlements, representing a 14.1% budget share based on the population census.

A technical and financial delegation from the Kurdistan Regional Government (KRG) is scheduled to arrive in Baghdad this week to participate directly in drafting the Region's share of the 2027 federal budget.

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Key Statements and Focus Area

• Channel8 has learned that the delegation consists of Makwan Jamil, Director General of the Budget, and Hawre Kamal, Advisor to the Ministry of Finance.
• The primary sticking point between the two sides remains the issue of oil delivery.
• The delegation will work on securing the Region's financial entitlements, which amount to approximately 29 trillion IQD, representing a 14.1% share based on the population census.

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The delegation's proposal encompasses the rights of public sector employees, civil and military promotions, the hiring of top university graduates, the permanent employment of contract workers, and the Peshmerga’s allocation within the sovereign budget.

To safeguard the requested 5.5 trillion IQD investment share, Baghdad will utilize an electronic tracking system to monitor project implementation until completion.

Projections indicate that Iraq's 2027 draft budget will range between 180 and nearly 200 trillion IQD, though oil delivery remains a central dispute.

While Baghdad demands a daily delivery of 400,000 barrels, the KRG delegation maintains that current domestic production capacity is limited to between 260,000 and 270,000 barrels per day, making the federal target unattainable.

FYI

Iraq began drafting a standalone 2027 budget law in late August after relying on an emergency spending mechanism throughout the previous fiscal year.

The federal Ministry of Finance set a mid-September deadline to submit the draft text to the Council of Ministers, ahead of a scheduled parliamentary review in October.

High-level technical teams from Erbil and Baghdad held intensive meetings last week to align the KRG's preliminary expenditure and revenue data with federal reporting structures.

The delegates held intensive meetings with the ministries of finance, planning, and oil to detail entitlements for public salaries, census-weighted investments, and international loan allocations.

Erbil committed to routing regional crude oil through SOMO to boost the federal treasury, while both sides pledged to resolve remaining oil production metrics through constitutional dialogue.

Meanwhile, the KRG negotiating delegation met with the Kurdistan Democratic Party (KDP) parliamentary bloc yesterday, calling on all Kurdistani blocs in the Iraqi Council of Representatives to maintain a unified stance to protect regional entitlements.

Officials emphasized securing the Kurdistan Region's constitutional rights by permanently safeguarding public sector salaries from broader financial and political disputes.

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