At a Glance

• Iraq postponed its 2027 draft budget bill due to disputes with Erbil and provincial demands.

• Three months of negotiations between Erbil and Baghdad have yielded no progress.

• MP Jamal Kochar warned Parliament could pass the budget without Kurdish consent.

Jamal Kochar, a Kurdish lawmaker in the Iraqi Parliament, stated that the 2027 draft budget bill, which was scheduled to reach the Council of Ministers today, has been postponed indefinitely amid disputes with the Kurdistan Region and demands from several provinces.

Key Statements and Focus Areas

• MP Jamal Kochar told Channel8 that talks between high-level and technical delegations from the Kurdistan Region and the Iraqi Ministry of Finance have been ongoing for nearly three months.

• Deepening disputes over Iraq's 2027 draft federal budget bill have delayed its approval by the Council of Ministers and its referral to Parliament.

He noted that the negotiations have yielded no progress, with budget disputes between Erbil and Baghdad remaining unchanged over the past month.

The lawmaker warned that if the deadlock persists, Parliament could pass the budget bill without Kurdish consent.

However, Kochar added that final approval of the draft bill is unlikely to be pushed into next year.

FYI

The central dispute revolves around the Kurdistan Region's budget allocation; while Baghdad has set the share at 12.67% to 12.7% (exceeding 12.8 trillion dinars), Erbil rejects the figure and demands an increase to 14% based on population census results.

Meanwhile, Baghdad has attached seven strict conditions to the draft bill for releasing the Region's financial entitlements.

Key stipulations include handing over 400,000 barrels of oil per day, transferring surplus gas and non-oil revenues, and settling bilateral debts and financial dues covering the period from 2004 to 2026.

Another major point of contention is Article 10 of the draft bill, which requires the Kurdistan Region to repay 12 trillion dinars in disputed historical debts and loans to Baghdad.

Additionally, Kurdish officials and lawmakers have raised concerns over proposed restrictions on the Region's oil contracts with foreign companies, prompting delegations from Erbil and Baghdad to continue negotiations toward a balanced agreement.

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