"An Extraordinary Session To Finalize The 2027 Budget"...
The Al-Zidi government is preparing to vote on the draft budget next Saturday in preparation for sending it to Parliament before the end of the year
Baghdad - One News - 11/03/2026 A government source reported that the Cabinet will hold an extraordinary session next Saturday, chaired by Prime Minister Ali Faleh al-Zaidi, to vote on the draft federal general budget law for 2027, in preparation for referring it to the House of Representatives for approval before the end of this year.
Shafaq News Agency quoted the source as saying that the session will be dedicated to discussing and voting on the draft budget, after the completion of the government procedures related to its preparation and review.
The Ministry of Finance had referred the draft law to the Ministerial Council for the Economy on September 27, before the Council approved it and referred it to the Cabinet.
In the same context, the parliamentary finance committee had decided to host Finance Minister Faleh Sari to discuss the budget priorities and the date of its submission to parliament, expressing its displeasure at not having been informed in advance about the draft project and its details.
The government's move to approve the 2027 budget comes after the failure to approve the 2025 budget schedules and the failure to enact a budget law for 2026, which kept government spending during those two years according to the temporary spending mechanism at a rate of one-twelfth, based on the Financial Management Law.
https://1news-iq.net/جلسة-استثنائية-لحسم-موازنة-2027-حكومة-ا/
Al-Halbousi And Al-Hakim Emphasize The Importance Of Expediting The Discussion And Approval Of The Budget
Baghdad - INA - 11/03/2026 Speaker of the Council of Representatives, Haibat al-Halbousi, and the leader of the National Wisdom Movement, Ammar al-Hakim, underscored on Tuesday the importance of finalizing the discussion of the national budget and voting on it.
In a statement received by the Iraqi News Agency (INA), the media office of the Speaker of the Council of Representatives reported that "Speaker Haibat al-Halbousi received the leader of the National Wisdom Movement, Ammar al-Hakim, on Tuesday."
The meeting addressed "political developments in the country, legislative priorities for the coming period, and issues that directly affect the needs of citizens."
Furthermore, the meeting covered the national budget, highlighting the necessity of accelerating its review and approval to facilitate the implementation of service-oriented and developmental projects and programs.
Both sides also stressed the importance of strengthening coordination and synergy between the legislative and executive branches, as well as supporting the government’s efforts in implementing its official program.
Baghdad Offers Budget Flexibility But Maintains Strict Oil Redlines
At a Glance
Baghdad is ready to adjust the Kurdistan Region's budget and waive 12 trillion IQD in debt.
Oil management, non-oil revenues, and the ASYCUDA system remain strict federal red lines.
Iraqi Finance Minister Faleh al-Sari confirmed plans to amend Article 10 of the budget bill.
The federal government is open to increasing the Kurdistan Region's budget share past 13%.
Channel8 has learned that Baghdad is prepared to adjust the Kurdistan Region's budget allocation and compromise on several financial demands, though it maintains that oil management, non-oil revenues, and the ASYCUDA system remain strict red lines.
Key Statements and Focus Area
According to exclusive information obtained by Channel8 directly from Iraqi Finance Minister Faleh al-Sari, the federal government is willing to amend Article 10 of the budget bill to eliminate multiple restrictive clauses, though other provisions will remain non-negotiable.
Baghdad is reportedly open to raising the Kurdistan Region’s budget share from 12.70% to over 13%, with the possibility of reaching 14.14% depending on the outcome of upcoming negotiations.
The federal government is prepared to waive 12 trillion Iraqi dinars (IQD) in accumulated debt previously claimed under Article 10, which consists of 3 trillion IQD owed to the Trade Bank of Iraq (TBI) and 9 trillion IQD from trial balance accounts spanning 2014 to 2024.
In another major concession, Baghdad has indicated its readiness to drop natural gas delivery demands from the Kurdistan Region for the 2027 fiscal budget, deferring the requirement until 2028.
In return, Baghdad is demanding 445,000 barrels of crude oil per day, presenting data from an international firm showing the Kurdistan Region has a 2027 production capacity of 650,000 barrels daily—metrics that OPEC has reportedly verified and shared with the federal government.
Implementation hurdles and deep mistrust over Article 10 have prompted Erbil to temporarily delay sending its negotiating delegation back to the capital.
Despite the skepticism, Kurdish officials still intend to return eventually to negotiate terms on the strict redlines surrounding oil, non-oil revenue, and the ASYCUDA system.
FYI
Channel8 earlier reported that the Kurdistan Region has drafted a new fiscal strategy aimed at finalizing its financial share within the Iraqi general budget by tying the allocation directly to the national food ration card system.
According to data from the ration system, utilizing this metric would guarantee the region a stable 13% share of federal revenues. While this strategic blueprint has been compiled by Erbil's negotiating delegation, the proposal has not yet been officially transmitted to the federal authorities in Baghdad.
Meanwhile, Kurdish lawmakers have issued strong warnings against retaining the controversial "actual expenditure" clause within the upcoming federal budget framework.
Legislators argue that calculating the Kurdistan Region's fiscal share under this model—where funds are only deduced after sovereign and governing expenses are subtracted—would severely impact the region's economy.
If the actual expenditure framework remains intact, the region's national allocation is projected to plummet to just 6.1%.
This sharp reduction would slash Erbil's federal funding to roughly 12.8 trillion dinars, falling far short of the 29 trillion dinars initially requested by the Kurdistan Regional Government.
https://www.channel8.com/english/news/8eb20a9f-5c98-454f-9408-5a6dacc79722
Zaidi Assures KDP Lawmakers Kurdistan Region Salaries Are Guaranteed
2026-11-03 | 18:41 BAGHDAD - 964 Media — Prime Minister Ali al-Zaidi told the Kurdistan Democratic Party’s lawmakers on Tuesday that his government would guarantee salaries for Kurdistan Region employees on a par with state employees in other ministries and governorates, his office said.
Zaidi received the head and members of the KDP’s parliamentary bloc to discuss services, relations between the federal government and the Kurdistan Regional Government and the provisions of the draft 2027 federal budget, according to a statement from his media office.
The pledge comes as Erbil presses Baghdad to change the draft. The KRG cabinet on Wednesday, Oct. 28, asked the federal cabinet not to let the bill go to debate and a vote in its current form, and told its negotiating team to set out the provisions and tables it considers unconstitutional or inaccurate.
The KRG wants the Region’s share of the budget based on 14.14% of Iraq’s population, the figure it takes from the 2024 census, and rejected a federal figure of 12.68% in September, according to KRG cabinet statements. It has also asked that the salaries of the Region’s employees, Peshmerga, retirees and welfare recipients match those in the rest of Iraq.
The draft has been delayed and is due in parliament on Nov. 15, a month after its legal deadline, the chair of parliament’s Finance Committee, Uday Awad, said on Oct. 26.
Zaidi said his government had overcome many challenges in recent months despite complex economic and international conditions. He said it would keep fighting corruption, pursuing those involved and cutting off its sources, and would tackle the economy’s problems by developing non-oil revenue, with a plan to raise oil production.
He urged lawmakers to carry out their legislative and oversight role and help pass key laws, and said the government was working to give the Iraqi economy a clear identity based on a development vision.
Shakhawan Abdullah, who heads the KDP bloc, said the bloc supported the government’s efforts and reform policies and that the Region was committed to the constitution and the law to ensure social justice, according to the statement. He praised Zaidi’s stance on guaranteeing the Region’s rights on a par with other governorates.
Kurdistan Region salaries are paid from the federal budget in exchange for the KRG handing over oil and non-oil revenue. A 2025 arrangement required the KRG to deliver 230,000 barrels of oil a day to the State Oil Marketing Organization, or Somo, and 120 billion dinars (about $79 million at the official rate) a month in non-oil revenue. Federal and Kurdish lawmakers have clashed this year over salary transfers and whether Erbil meets those terms.
Exports through the Region’s pipeline to Turkey’s Ceyhan port resumed on Sept. 27, 2025, after a halt of about two and a half years, with sales handled by Somo. Oil flowed through the pipeline again in March after a standoff between Baghdad and Erbil, as the U.S.-Israeli war with Iran disrupted exports from the south.
Salary payments to the Region have been delayed repeatedly over the years, and this year funds for April salaries arrived in tranches in mid-May. Federal authorities have at times held back transfers, saying the KRG had not met its obligations, while Kurdish officials say salaries are a constitutional right that must not be tied to political or financial disputes.