Preparations for Iraq’s 2027 federal budget have begun, with the Iraqi government and the Kurdistan Regional Government (KRG) holding discussions over the Region’s constitutional rights and financial entitlements.
The KRG is seeking to secure its share of the 2027 budget and address financial issues that have contributed to economic difficulties in the Region over recent years. A KRG delegation is expected to travel to Baghdad soon to discuss preliminary understandings related to the budget.
A delegation from the Ministry of Natural Resources is also expected to meet with officials from the Iraqi Ministry of Oil to discuss the gasoline supply situation and proposals submitted by the Region. The talks are expected to cover broader energy issues, including oil production and the financial entitlements of international oil companies.
Iraq’s 2027 budget is estimated at around 200 trillion Iraqi dinars, with approximately 150 trillion allocated to salaries and other state obligations and 50 trillion designated for investment, programs, and development projects.
The federal government is reportedly preparing the budget using a performance-based budgeting model, with government spending increasingly linked to measurable outcomes and predetermined objectives.
Economic pressures, including regional instability and disruptions affecting oil and trade, have complicated Iraq’s financial situation. Officials hope that improved economic conditions will help address budgetary pressures and allow Parliament to approve the 2027 budget without major delays.
