At a Glance

• The KRG demands a 14.14% share in the 2027 Iraqi federal budget based on 2024 census data.
• Erbil insists Kurdish public salaries match Iraqi counterparts and remain completely free from political disputes.
• The cabinet relies on the Constitution and binding Federal Supreme Court rulings to guard its financial rights.
• Employer Relief: The KRG approved a 90-day exemption on late social security penalties if employers clear accumulated debts.

The Kurdistan Regional Government Council of Ministers on Wednesday demanded that Kurdistan’s 14.14% population share determine its allocation in the 2027 Iraqi federal budget, while insisting that public salaries be paid equally to the rest of Iraq and approving a 90-day social security penalty exemption for employers.

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Key Statements and Focus Area

• The Council of Ministers reiterated that “the actual population percentage of the Kurdistan Region, according to the results of the 2024 general population census, stands at (14.14%).” 
• The cabinet emphasized that “salaries and financial entitlements for civil servants, Peshmerga, retirees, families of martyrs, political prisoners, and social welfare beneficiaries in the Kurdistan Region—along with job grades and financial allocations—must be provided equally.” 
• Furthermore, the KRG approved a proposal by the Ministry of Labor and Social Affairs regarding a full exemption from late payment penalties on social security contributions.

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The KRG Council of Ministers convened its regular Wednesday session to review the latest negotiation updates and outcomes between Erbil and the federal government. The delegation reported on recent talks with the Federal Ministry of Finance regarding Kurdistan's financial entitlements in the draft 2027 Iraqi budget. 

The Council evaluated the negotiations, voicing concerns over proposed texts while emphasizing the necessity of "respecting the constitutional and financial rights and entitlements of the Kurdistan Region."

The cabinet emphasized that this (14.14%) figure must become the basis for determining the Region's share in the federal general budget. 

The Council demanded Kurdistan public salaries be paid equally to Iraqi counterparts, "without being linked to political disputes or subjected to unfair restrictions, based on the Constitution, laws, and binding rulings of the Federal Supreme Court." 

The Council reaffirmed support for the KRG delegation, backing continued talks to reach a fair, constitutional agreement that permanently secures the Region's financial rights.

Additionally, the Council approved a full exemption from late social security penalties, provided employers clear their accumulated debts within 90 working days. This initiative aims to support employers and boost fund revenues, which are dedicated to protecting workers' rights and securing their pensions.

FYI

The KRG delegation—led by Cabinet Chief of Staff Omed Sabah and Cabinet Secretary Amanj Rahim—has already conducted multiple high-level visits to Baghdad. 

A high-level Kurdish negotiating team is set to visit Baghdad after their latest meeting to contest several vital fiscal portfolios. 

The 14.14% Census Dispute: Erbil's push for a fixed 14.14% allocation is a response to years of budget adjustments. Historically, the Region's legislative share sat around 12.67%, but KRG Ministry of Planning data and the recent 2024 general population census support the higher 14.14% figure. 

Erbil insists this data must serve as the final baseline to safeguard funding for public infrastructure, food, and healthcare.

A key objective for the upcoming delegation meetings is to legally decouple civil servant, Peshmerga, and retiree salaries from the strict "actual expenditure" criteria and political disputes. 

The KRG is pushing for a permanent, stable transfer mechanism enshrined directly into the text of the 2027 Iraqi general budget law to ensure equal treatment under the rulings of the Federal Supreme Court. 

Speaking to Channel8 earlier, Iraqi Parliament Second Deputy Speaker Farhad Atrushi warned that the current 217 trillion dinar draft budget is "highly detrimental" and part of a political plan to financially destabilize the Kurdistan Region. 

Atrushi said that the budget, drafted in "strict secrecy", imposes a 12 trillion dinar debt on Erbil, whereas the KRG is simply demanding its legitimate 29 trillion dinar allocation. To counter these systematic financial cuts, he urged total unity between the KDP and PUK while pushing to legally decouple Kurdish public servant salaries from ongoing political disputes.

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