Former Parliamentary Finance Committee member Abdul Hadi Al-Saadawi said the Kurdistan Region is receiving more than its fair share of the federal budget and revenues, stressing the need to place the region’s operational expenses and employee salaries under the supervision of Iraq’s federal Ministry of Finance.
Al-Saadawi explained that Iraq has been operating under a three-year budget framework, but the absence of annual budgets in recent years has forced the government to continue spending under the 1/12 rule. He said a 2027 budget is essential to provide the legal authority needed for government spending and to ensure state institutions continue functioning properly.
He also noted that Iraq is facing significant financial challenges. According to him, the ongoing regional conflict has affected oil exports, which remain the country’s primary source of income. As a result, he believes it will be difficult to meet new spending demands unless additional financial resources become available.
Regarding relations between Baghdad and Erbil, Al-Saadawi argued that the Kurdistan Region receives allocations and other financial entitlements despite unresolved issues related to oil revenues and border-crossing income. He said these matters should be settled to create a clearer and more balanced financial relationship between the two sides.
He further suggested that salaries and financial allocations for Kurdistan Region employees should be managed through the federal Ministry of Finance. In his view, this would place responsibility for the region’s operational budget under the federal government and create greater transparency in the distribution of public funds.
His comments come as discussions continue over Iraq’s 2027 budget and the financial challenges facing the country amid regional tensions and uncertainty in oil markets.
