At a Glance

• A high-level KRG delegation visits Baghdad today to resume 2027 federal budget negotiations.

• The talks target Article 10 of the draft law, where Erbil holds major reservations regarding its allocated share.

• Erbil disputes the 12.70% budget cap, demanding 14.14% to match the recent 2024 Iraqi Census data.

• Oil quotas are a major deadlock, as the draft demands 400,000 bpd while the Region can only produce 300,000 bpd.

A high-level Kurdistan Regional Government delegation is in Baghdad to resume crucial negotiations with the Federal Ministry of Finance over financial entitlements and oil obligations in the upcoming 2027 Iraqi general budget.

Key Statements and Focus Area

• “During the visit, the KRG delegation, in coordination with Kurdish representatives in the federal authorities, will hold official meetings with the Federal Ministry of Finance,” the Department of Media and Information stated.

• The talks aim “to continue dialogues and reach a mutual and fair understanding regarding the financial and oil obligations of the Kurdistan Region, as well as the region's financial rights and entitlements in the federal general budget for the year 2027.”

• An official from the KRG Council of Ministers earlier confirmed to Channel8 that the delegation is returning to Baghdad this evening to resume talks regarding the Region's budget share.

According to a statement from the Department of Media and Information on Friday, a senior government delegation traveled to Baghdad to continue critical negotiations with the federal government "regarding the obligations, rights, and entitlements" of the Region in the 2027 budget.

The high-level delegation comprises the Head of the Diwan (Office) of the KRG Council of Ministers, the Secretary of the Council of Ministers, the Head of the Department of Coordination and Follow-up, the Undersecretary of the Ministry of Natural Resources, and the Directors General of Budget and Accounting from the Ministry of Finance and Economy.

A KRG official told Channel8 that the visit focuses on specific clauses outlined in Article 10 of the draft law, which the Kurdistan Region has raised reservations about.

He noted that the delegation will specifically negotiate Article 10, which sets Kurdistan's budget share at 12.70%, whereas the Region's actual population share stands at 14.14% according to the 2024 Iraqi Census.

Furthermore, the draft budget expects the KRG to export 400,000 barrels of oil per day, despite the fact that the region's current production capacity is limited to 300,000 barrels per day.

FYI

The Iraqi Council of Ministers voted to send the draft budget back to the Ministry of Finance in mid-October 2026, just as the statutory October 15 deadline for parliamentary submission was being reached.

The draft budget totals 217 trillion dinars, with 112 trillion dinars allocated to sovereign expenses; out of the remaining 105 trillion dinars, the Kurdistan Region's 12.70% share amounts to 13 trillion dinars.

This stands in contrast to the Region's request for approximately 29 trillion dinars, which includes 23.5 trillion dinars for operational expenditures and 5 trillion dinars for the investment budget.

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