In an exclusive interview with The Kurdish Globe, Iraqi lawmaker Farooq Muhammad discussed the draft 2027 federal budget, the Kurdistan Region’s financial entitlements, the ongoing disputes over oil and domestic revenues, and the outlook for civil servants’ salaries.
Muhammad said the 2027 federal budget draft was still being prepared by Iraq’s Ministry of Finance and had not officially reached the Council of Representatives. However, lawmakers had obtained an unofficial copy and reviewed its contents.
Budget draft leaves Kurdistan Region’s share unclear
Muhammad criticized the draft, saying it did not specify the Kurdistan Region’s share of the federal budget or adequately address its financial entitlements.
“According to the draft prepared so far, the Kurdistan Region’s financial share has not been determined in any way,” he told The Kurdish Globe, describing the proposal as unsuitable for the Region.
Regarding civil servants’ salaries, Muhammad expressed confidence that payments would continue, saying the Kurdistan Regional Government had been meeting its obligations and regularly informing the federal government of its compliance.
He acknowledged that delays could occur but said he expected salaries to be paid.
Muhammad stressed that the Kurdistan Region’s financial entitlements extend beyond civil servants’ salaries. They also include investment budgets, development funding, provincial allocations, promotions for public employees, recruitment of top graduates and medical staff, and the conversion of contract workers to permanent positions.
He said Kurdish lawmakers were working to press the Ministry of Finance and other relevant federal authorities to ensure these allocations were included in the budget.
Oil exports and domestic revenues remain disputed
Muhammad identified oil exports and domestic revenues as the two main unresolved issues between the Kurdistan Regional Government and the federal government in Baghdad.
He said the federal government was seeking monthly oil exports of between 400,000 and 500,000 barrels from the Kurdistan Region. However, he attributed lower production and exports, currently estimated at between 200,000 and 250,000 barrels, to regional instability and security risks affecting oil fields.
The domestic revenue file also remains contentious. Muhammad said the federal government was seeking all domestic revenues under the draft budget, a demand he argued conflicted with the law and constitution.
He added that arrangements for revenue-sharing remained unsettled, with negotiations and meetings between the two sides continuing.
Budget timeline remains uncertain
Muhammad said the draft budget was still at the Ministry of Finance or may have reached the Council of Ministers. If the cabinet began reviewing the proposal, he estimated that more than two weeks could be needed before it was approved and forwarded to parliament.
He said there was still time to submit the 2027 budget and expressed hope that the process would not face further delays.
However, he cautioned that the outcome remained uncertain, reflecting the continuing difficulties surrounding budget negotiations in Iraq.
The Kurdish Globe