Baghdad to Receive New Kurdistan Region Budget Proposal
At a Glance
Channel8 has learned that a new budget proposal has been put forward.
Erbil seeks to fix its share via the food ration system.
Under this system, the Region's share would reach 13%.
The proposal hasn't been officially presented to Baghdad yet.
Kurdish lawmakers warn against the actual expenditure clause.
Channel8 has learned that a budget proposal has been put forward, and the Kurdistan Region negotiating delegation is scheduled to deliver it to Baghdad, as disagreements over the Region’s budget share remain ongoing.
Key Statements and Focus Area
According to information obtained by Channel8, the core of the proposal indicates that the Kurdistan Region will agree to finalize its fiscal share within the Iraqi general budget based on the national food ration card system.
Erbil wants a major overhaul of the draft version of Article 10 in the budget bill.
Channel8 understands that the proposal has not yet been officially presented to Baghdad.
According to the food ration card data, the Kurdistan Region's share would reach 13%.
Meanwhile, Kurdish lawmakers previously interviewed by Channel8 have warned against maintaining the "actual expenditure" clause within the federal budget.
They argue that if the Kurdistan Region's fiscal share is calculated based on actual spending—meaning it is deduced only after sovereign and governing expenditures are subtracted—the allocation will plummet to 6.1%, equating to roughly 12.8 trillion dinars instead of the requested 29 trillion dinars.
FYI
The ongoing legislative dispute follows a prolonged period of intense fiscal negotiations between Erbil and Baghdad regarding national resource allocations.
The federal government has fixed the Kurdistan Region’s share at 12.7% in the draft bill. In contrast, the Kurdistan Region is demanding that its share be raised to 14.14%, arguing that its allocation should be based on the results of the latest general population census.
This latest proposal comes at a critical juncture as Iraq finalizes its 2027 macroeconomic framework.
Historically, the distribution of national revenues has been an ongoing source of political friction between the Kurdistan Regional Government (KRG) and the federal authorities, frequently leading to delays in civil servant salary payments.
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