At a Glance

• KRG Finance Minister Awat Sheikh Janab criticized the 2027 federal budget draft for deep-seated structural inequities against the region.
• The Kurdistan Region's proposed budget share was reduced from 14.14% down to 12.68%.
• The ministry called for moving public sector salaries out of "actual expenditures" and into sovereign spending categories.
• Officials pointed to administrative detachment of territories like Makhmour and Shikhan during recent population censuses.

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Speaking at the Slemani Summit, Kurdistan Regional Caretaker Government Minister of Finance and Economy Awat Sheikh Janab detailed systemic disparities in how federal budgetary frameworks are structured for the upcoming 2027 fiscal year.

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Key Criticisms and Structural Disparities

• Reduced Budget Share: Despite demographic growth indicators that warrant a 14.14% allocation, the region's share has been scaled back to 12.68%.
• Administrative Exclusions: The census process effectively detached vital administrative territories—including Makhmour, Gwer, Shikhan, Dibaga, and Mulla Qara—from direct KRG jurisdiction despite ongoing regional management.
• Salary System Reform: The KRG insists that tying payrolls to "actual expenditures" creates continuous administrative hurdles, demanding the dossier be shifted to sovereign or ruling expenses.
• Investment and Sovereign Debt Imbalances: While completely excluded from federal investment budget allocations, the region remains pressured to service federal external debt obligations.

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The minister also highlighted implementation delays by Baghdad regarding automated customs (ASYCUDA) and company taxation agreements, alongside persistent double standards in how provincial counts are applied under actual spending formulas.

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The current summit brings that discussion into a more sector-focused setting, with banking, investment, real estate and industry among its central themes. Organizers and participants are also examining obstacles facing investors and businesses, including access to banking services and the economic disputes between Erbil and Baghdad.

For Slemani, the summit reinforces an effort to position the city as a venue for economic dialogue and investment. Whether that translates into sustained investment will depend on practical outcomes, including improved access to finance, reduced administrative barriers and stronger coordination between public institutions and the private sector.

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