KRG Says 120 Billion Dinar Transfers to Baghdad Will End in 2027
KRG spokesperson Peshawa Hawramani says 120 billion dinar transfers to Baghdad will end in 2027 as talks advance on salaries, revenues and budget rights.
ERBIL (Kurdistan24) - The Kurdistan Regional Government (KRG) will no longer transfer 120 billion Iraqi dinars to Baghdad next year under a planned revision of financial arrangements between the two governments, KRG spokesperson Peshawa Hawramani said on Tuesday, Nov. 10, 2026.
Speaking to Kurdistan24, Hawramani said the existing mechanism for transferring public-sector salaries would continue during the remaining two months of 2026, while Erbil and Baghdad work toward a new agreement for 2027.
He said the planned changes followed discussions between KRG Prime Minister Masrour Barzani and Iraqi Prime Minister Ali al-Zaidi, during which outstanding issues involving salaries, domestic revenues and the Kurdistan Region's constitutional financial entitlements were addressed.
Progress on Budget and Salary Disputes
Hawramani said Prime Minister Barzani had presented the Kurdistan Region's constitutional rights and financial demands in detail during his meeting with the federal leadership.
Among the concerns raised were the method used to deduct sovereign expenditures from Iraq's federal budget and the failure to allocate the Region its full entitlements, including funding for development and investment projects.
According to the spokesperson, the Iraqi prime minister demonstrated an understanding of the KRG's position and expressed willingness to pursue fundamental solutions to the longstanding disagreements.
Hawramani also reported progress in discussions concerning domestic revenues and salary payments, describing the level of understanding between the two governments as positive.
However, the spokesperson did not disclose the detailed terms of the proposed 2027 financial mechanism or announce that a final agreement had been signed.
The expected changes would mark a development in the continuing negotiations over the financial relationship between Erbil and Baghdad, particularly the treatment of revenues, salaries and budgetary allocations.
Compensation for Erbil Flood Victims
Separately, Hawramani addressed the government's response to the deadly flash floods that struck Erbil on Saturday, Nov. 7.
He said Prime Minister Barzani had decided that affected residents would receive assistance and compensation according to the government's available capabilities once a comprehensive assessment of the damage was completed.
The Erbil Governorate Operations Room and the Barzani Charity Foundation are responsible for conducting the assessment and documenting losses. The names of affected residents are currently being registered.
Hawramani said more than 80 millimeters of rain had fallen within a short period, describing the exceptionally heavy rainfall as capable of causing flooding and damage in any country.
Nevertheless, he stressed that the severity of the weather would not prevent the government from examining possible negligence.
Any negligence identified through the investigation would be subject to legal accountability, he said.
The compensation process will proceed following the completion of damage assessments, although no specific payment amounts or distribution timetable have yet been announced.