The dilemma of wealth and justice: The 2027 budget renews the dispute between Baghdad and Erbil.
The issue of the Kurdistan Region’s share of the federal budget remains at the heart of Iraq’s persistent financial crises, with political and economic conflicts resurfacing with each review of the budget items.
Parliamentary and public opposition is mounting against any move to increase Erbil’s financial allocations at the expense of the central and southern provinces, particularly oil-producing and impoverished regions. There are growing demands to subject the distribution of wealth to the principles of constitutional justice and national equity to protect vital service projects across the country.
These voices warn against the consequences of reducing the entitlements of provinces that contribute significantly to the federal treasury with oil revenues and the most deprived areas, arguing that any imbalance in this financial system perpetuates injustice and directly harms the infrastructure of the population.
In this context, Member of Parliament Rabie al-Moussawi categorically rejected any move to increase the Kurdistan Region’s financial allocations in the federal budget at the expense of reducing the entitlements of oil-producing and impoverished provinces, emphasizing that the distribution of wealth must adhere to the principles of constitutional justice and national equity.
Al-Moussawi told Al-Maalomah News Agency, “It is unacceptable and illogical to increase the Kurdistan Region’s budget at a time when allocations for the central and southern provinces are being significantly reduced, especially those that bear the greatest burden in supplying the federal treasury with oil revenues.” He explained that “these financial policies perpetuate injustice and harm vital projects and services for citizens.”
He added, “The provinces classified as the poorest and those that produce oil are suffering from deteriorating infrastructure and suffocating environmental and health crises, and they are waiting for justice through increased investment allocations, not cuts.” He pointed out that “Parliament will not allow the passage of any political settlements that negatively affect the rights and entitlements of the people in those deprived provinces.”
Al-Moussawi stressed “the necessity of obligating the Kurdistan Region to fulfill all its oil and financial commitments and deliver revenues to Baghdad before demanding any increase, while adopting population ratios and poverty levels as criteria for distributing the general budget.”
From Erbil, Ikhlas al-Dulaimi, a member of the Finance Committee and a representative of the Kurdistan Democratic Party bloc, confirmed that no general agreement had been reached on the draft federal budget law for 2027, despite its presentation during yesterday’s meeting of the State Administration Coalition.
Al-Dulaimi stated, in a statement reported by Al-Maalouma News Agency, that the draft budget requires some amendments, noting the current lack of a government agreement between the federal government and the Kurdistan Regional Government, in addition to objections regarding the region’s share of the budget.
She added that, according to her calculations, the Kurdistan Region’s share would be approximately 6% of the total budget, not 12.67%, clarifying that the region’s share amounts to 12.8 trillion dinars out of 217 trillion dinars in the draft budget law.
Al-Dulaimi explained that the current stage requires a return to the negotiating table to discuss the draft law and establish a solid foundation for reaching an agreement before it is voted on in the Cabinet and sent to Parliament.
She indicated that there is no specific date set for sending the draft budget law to Parliament, noting that this depends on reaching a political agreement on it and its approval by the Cabinet.
Almaalomah.me