The Kurdistan Regional Government (KRG) announced that discussions on the Kurdistan Region budget will resume after Iraq forms a new federal government. Officials confirmed that the KRG will push for a 14% budget allocation as a constitutional right.
Speaking at a press conference, KRG spokesman Peshawa Hawramani said negotiations over the federal budget are currently postponed. He explained that talks will restart once the new Iraqi government is in place. Hawramani stressed that the Kurdistan Region budget should receive a fair share. He said the Iraqi budget should allocate 14% to the Kurdistan Region.
Therefore, the Kurdistan Region budget discussions remain a key issue between Erbil and Baghdad. Hawramani noted that past delays have affected salaries and public services. Therefore, the KRG aims to resolve the issue early in the next government term. Officials believe a clear budget agreement will help stabilize the region’s finances.
Moreover, Hawramani also addressed oil-related issues. He confirmed that the oil agreement between Erbil and Baghdad will be renewed and will continue. He added that contracts with oil companies will also remain in force. Moreover, a consulting company has started work to calculate the real cost of oil production in the Kurdistan Region. This step aims to support transparency and future negotiations.
On customs disputes, Hawramani stressed constitutional principles. He said the constitution requires both the Kurdistan Region and Baghdad to jointly manage customs. According to him, if both sides follow the constitution, they can reach an agreement on customs administration. This cooperation could improve revenues and reduce disputes.
Additionally, the spokesman also highlighted salary delays. He confirmed that Iraq owes the Kurdistan Region seven salary payments over the past three months. Two of these unpaid salaries are for November and December. These delays have increased pressure on the regional government.
To meet its obligations, the Kurdistan Region reduced several development projects. Hawramani said the KRG did this to provide 120 billion dinars in non-oil revenues to Baghdad. Under the agreement, Baghdad sends public sector salaries after receiving this amount.
Finally, Hawramani said the KRG cabinet will hold its first meeting of the new year. The meeting will focus on unpaid salaries, oil policy, and securing the Kurdistan Region budget and financial entitlements for 2026.
