After More Than a Decade, Kurdistan to Have a Budget Law in 2026; Qubad Talabani Claims

Peregraf 

The Kurdistan Regional Government (KRG) is set to have a formal budget law in 2026 for the first time in over a decade, following an apparent agreement between the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) during the talks for the formation of the upcoming government in Kurdistan region.

Qubad Talabani, head of the PUK’s high-level delegation in the negotiations, confirmed the agreement, stating that it would establish a solid foundation for governance and decentralization. "Expansion of power will be part of the agenda of the next government," the Kurdistan Region’s Deputy Prime Minister said while participating in a panel on peaceful coexistence between communities, organized by the Vision Foundation in Sulaymaniyah.

The KRG has functioned without an approved budget by the Kurdistan parliament since 2013, leading to financial obscurity and spending decisions being made arbitrarily by the KRG. Between 1992 and 2013, the Kurdistan Parliament passed only ten budget laws due to political instability, including the Kurdish civil war. However, despite a relatively stable post-2005 period, successive KRG cabinets under former Prime Minister Nechirvan Barzani and his successor Masrour Barzani have failed to present a budget to parliament.

Aside from independent oil sales and daily oil smuggling by tankers, the KRG generates revenue through taxes and customs duties. However, the total income and expenditure remain undisclosed, raising concerns over transparency and accountability. The lack of a budget has also been a point of contention between the KDP and PUK, with both parties accusing each other of unfairly controlling and distributing revenues from their respective areas of control.

The KRG’s ninth cabinet, led by Prime Minister Masrour Barzani since July 2019, repeatedly pledged to draft and approve a budget. Cabinet meeting minutes published on the Council of Ministers’ website indicate that the issue has been discussed numerous times, yet no draft was ever formally presented.

With the KDP-PUK agreement to introduce a budget law in 2026, the next Kurdistan government is probably expected to address longstanding concerns about financial transparency, equitable resource distribution, and legislative oversight in Kurdistan.