The federal government continues its movements and discussions regarding the draft law for the general budget for 2027, as part of its efforts to address financial issues lingering between Baghdad and Erbil and to ensure the salaries of Kurdistan Region employees similar to their counterparts in other provinces.
In this context, Prime Minister Ali Falah Al-Zaydi confirmed the government's commitment to ensure and secure the salaries of the region's employees during his meeting with the president and members of the Kurdistan Democratic Party bloc in the House of Representatives, where both sides discussed several common issues, foremost among them the relationship between the federal government and the regional government, as well as the discussion of the items of the federal budget draft law for 2027.
Al-Zaydi emphasized that the government is working to address economic issues and enhance state resources by developing non-oil revenues, activating financing sources, and setting plans to increase oil production, contributing to supporting financial stability and securing government obligations.
For his part, the head of the Kurdistan Democratic Party bloc, Shakhwan Abdullah, confirmed his bloc's support for the government's reform efforts and policies, noting the Kurdistan Region's commitment to the constitution and laws to ensure social justice and preserve the region's financial rights.
At the same time, technical and political discussions continue regarding the share of the Kurdistan Region in next year's budget, with the proposed demands including securing the salaries of employees and retirees, the entitlements of the Peshmerga forces, allocations for investment projects, and health services, along with addressing outstanding financial dues.
The Kurdistan Regional Government aims to establish a clear and stable mechanism for transferring financial dues from Baghdad to ensure the regular payment of salaries without being affected by financial and administrative disputes between the two sides.
These movements come at a time when the process of preparing the 2027 budget faces challenges related to determining oil and non-oil revenues, operational and investment expenses, the region's share, as well as the need to achieve balance between the state’s financial obligations and public spending requirements.
The upcoming phase is expected to witness more discussions regarding the details of the project before completing the governmental procedures and referring it to the House of Representatives for discussion and voting, which will determine the financial framework of the state for the next year.