KRG Delegation Holds Baghdad Talks on 2027 Budget Rights
Throughout the meetings, the two sides emphasized resolving outstanding financial and economic issues through dialogue and coordination while adhering to constitutional and legal principles.
ERBIL (Kurdistan24) – A high-level negotiating delegation from the Kurdistan Regional Government (KRG) held a series of meetings with Iraq’s federal ministries of Finance, Planning and Oil in Baghdad on Wednesday, to discuss the Kurdistan Region’s constitutional share and financial entitlements in the draft 2027 federal budget law.
According to a statement from the KRG Department of Media and Information, the meetings were part of the ongoing process of preparing and drafting the 2027 federal budget bill.
The delegation first met with Federal Finance Minister Faleh Sari, who also serves as acting planning minister. During the meeting, the KRG delegation described the participation of its representatives in the federal budget drafting process as an important and positive step.
The delegation presented its views and proposals on the draft legislation, stressing the need to determine the Kurdistan Region’s share and financial entitlements fairly and in accordance with the Iraqi Constitution and relevant laws.
The delegation said a clear and stable framework was needed to regulate financial relations between the federal government and the Kurdistan Region.
Sari welcomed the KRG delegation’s participation and stressed the importance of continued dialogue and coordination. He said the Federal Ministry of Finance would address the Kurdistan Region’s financial rights and entitlements in accordance with the Constitution.
Investment allocations, loans and grants
The KRG delegation also held a meeting at the Federal Ministry of Planning with deputy ministers from both sides and senior officials responsible for government investment projects.
The delegation argued that the Kurdistan Region should receive its share of investment allocations based on the latest population census results. It also called for appropriate allocations for development projects in the region’s provinces, as well as petro-dollar revenues.
The KRG representatives further called for the region to receive a fair share of loans, international assistance and grants. They argued that because the Kurdistan Region contributes proportionally to the repayment of such loans and their interest, it should also receive a corresponding share of the resulting allocations and benefits.
The Federal Planning Ministry welcomed the proposals and expressed readiness to consider them during the preparation of the 2027 budget bill. The two sides agreed to continue technical and legal coordination.
Oil exports and SOMO
The KRG delegation also met with officials at the Federal Ministry of Oil, including the oil minister Bassim al-Abadi, his deputy and relevant director generals.
Discussions focused on oil-related provisions in the 2027 budget, including the projected average volume of oil exports, including crude produced in the Kurdistan Region, the estimated oil price for 2027 and the amount of crude allocated for domestic consumption.
The KRG delegation reaffirmed that oil produced in the Kurdistan Region for export would be handed over to Iraq’s state-owned oil marketing company, SOMO, for sale on international markets, with the revenues transferred to the federal treasury.
The delegation said the arrangement would help strengthen cooperation between Erbil and Baghdad while increasing federal public revenues.
Federal oil officials welcomed the proposals and stressed the importance of continued coordination to establish balanced and practical oil provisions in the 2027 budget and ensure the sustainable production and export of crude oil.
Salaries and constitutional entitlements
Throughout the meetings, the two sides emphasized resolving outstanding financial and economic issues through dialogue and coordination while adhering to constitutional and legal principles.
The KRG delegation reaffirmed the region’s commitment to fulfilling its constitutional and legal obligations. At the same time, it stressed that the federal government has a responsibility to ensure and protect the Kurdistan Region’s constitutional share and financial entitlements, particularly the salaries and financial rights of public-sector employees.
The talks come as Erbil and Baghdad continue efforts to establish a more stable framework for their financial and oil-related relations, with the Kurdistan Region seeking guarantees for its constitutional share in the 2027 federal budget.