At a Glance

• The KRG Council of Ministers rejected Baghdad’s 12.68% population cap, demanding the full census-approved 14.14%.
• Officials warned that reducing the demographic percentage directly undermines Kurdish representation in federal institutions.
• Erbil reiterated that public employee payrolls are a non-negotiable right protected by 2024 Federal Supreme Court ruling.
• The KRG negotiating delegation received directives to continue meetings in Baghdad to secure entitlements in the 2027 Federal Budget Bill.

The Council of Ministers of the caretaker KRG has formally rejected a federal decision capping the Kurdistan Region’s population share at 12.68% instead of the census-approved 14.14%, while directing its negotiation delegation to continue Baghdad talks to secure the Region’s constitutional financial entitlements in the upcoming 2027 federal budget.

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Key Statements and Focus Areas

• The Council of Ministers rejected the Baghdad share of the Kurdistan Region at 12.68%, given that “the official and approved results of the General Population and Housing Census have determined the Kurdistan Region’s population proportion to be 14.14%.”
• “The Council of Ministers underscored the continuation of dialogue with the Federal Government to ensure the 2027 Budget Bill is drafted on the basis of the Constitution, relevant federal laws, and the binding rulings of the Federal Supreme Court, explicitly and fairly securing the Kurdistan Region’s financial and constitutional shares,” the KRG noted.
• During the session, officials criticized tying public employees salaries to financial obligations, emphasizing that salaries are a non-negotiable legal right that must be disbursed on schedule, without discrimination, identical to federal counterparts.

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The Council of Ministers of the Kurdistan Region convened on Wednesday to discuss several items, including preparations for the 2026–2027 academic year and the Region’s financial share in Iraq’s draft 2027 federal budget, aligning with the general census and the financial entitlements.

The KRG Council of Ministers has formally rejected a decision by the Iraqi Supreme Council for Population that caps the Kurdistan Region’s population share at 12.68%, with officials explicitly demanding adherence to the official 2024 census results which established the Region's actual proportion at 14.14%.

The Council of Ministers emphasized that the census was conducted “based on mutual understanding and a joint agreement,” with all procedures formally approved by the federal cabinet.

The cabinet directed the Ministries of Planning and Justice, alongside the Cabinet Diwan and Secretariat, to take all necessary legal and constitutional measures to correct the population percentage in line with the original 2024 census agreements.

The Council of Ministers underscored that determining the correct population percentage is a “fundamental matter,” noting that it extends far beyond merely securing the Kurdistan Region’s financial entitlements and shares within the Federal General Budget and public expenditure allocations.

Instead, officials highlighted that this figure has a direct impact on the region's level of “participation and representation” across federal elected bodies, presidencies, constitutional institutions, and Iraq’s diplomatic missions abroad.

The KRG’s negotiating delegation, which met Iraqi authorities earlier regarding the budget, briefed the cabinet on its recent talks in Baghdad with the federal ministries of Finance, Planning, and Oil regarding preparations for the Federal General Budget Bill.

The delegation detailed its efforts to secure the Region’s financial and constitutional entitlements in the bill, focusing on public servant salaries, the overall KRG share, revenue calculation methods, and participation in federal programs.

The government highlighted that applying the "actual expenditure" criterion and expanding sovereign spending items in previous federal budget laws has historically created barriers that reduced the Kurdistan Region's financial entitlements.

It criticized tying salaries to financial obligations, stressing that public servant pay is a non-negotiable legal right that, per the February 2024 Federal Supreme Court ruling, must not be disrupted by budget disputes.

The Council of Ministers underlined that dialogue must continue so the bill is drafted to explicitly secure the region's shares, insisting that ongoing disputes “must not cause any delays or disruptions” to public servant salaries.

The government highlighted that unity among all Kurdish parliamentary factions is of “paramount importance” to jointly defend the region’s constitutional entitlements in the 2027 budget.

FYI

The ongoing dispute between Erbil and Baghdad stems from the late 2024 national census, which served as Iraq's first comprehensive demographic count in nearly four decades. 

While the raw census data established that the Kurdistan Region accounts for 14.14% of Iraq's total population, the federal Ministry of Planning applied mathematical adjustments that systematically reduced this figure to 12.68%.

The KRG has firmly rejected this recalculation, noting that locking the region's demographic weight at the lower percentage directly suppresses its constitutional share of public revenues in the upcoming 2027 Federal General Budget Bill. 

Furthermore, Kurdish officials warn that this reduction carries severe long-term political consequences, as it directly diminishes the region's future representation and participation within federal elected bodies, presidencies, and diplomatic missions abroad.

A central point of friction remains Baghdad's historical practice of tying civil employee payrolls to Erbil's fulfillment of oil and non-oil revenue obligations. 

The KRG maintains that public employee salaries are an absolute legal entitlement, relying on a landmark February 2024 Federal Supreme Court ruling which explicitly decreed that political or financial disputes between the two governments must never be used as a pretext to delay or disrupt the livelihood of public servants.

Direct engagement between the KRG Delegation and federal authorities in Baghdad has intensified regarding the 2027 federal budget in recent weeks.

Key areas of contention include a dispute over the region's demographic share, with Erbil demanding a 14.14% allocation and Baghdad offering a 12.68% cap, alongside ongoing friction over public payrolls and oil infrastructure management 

Meanwhile, The KRG spokesperson Peshawa Hawramani reaffirmed today that Erbil has officially rejected Baghdad's decision to cut the Region's population share. 

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