According to data published by the Iraqi Finance Ministry—based on the joint federal audit conducted by Baghdad and the KRG, and confirmed as accurate by a Kurdish member of the Iraqi Parliament’s Finance Committee – the Kurdistan Regional Government’s (KRG) total oil and non-oil revenues in 2024 exceeded 20 trillion Iraqi dinars, compared to nearly 15 trillion dinars in 2023.

Given that the KRG’s share of the federal budget is set at 12.75% (excluding sovereign expenditures), the Finance Ministry has calculated that the region has already received more than its allocated share—largely because oil revenues generated under KRG-administered territory were included in the accounting. However, the revenues are not being transferred back to the KRG treasury, and at least of of the oil revenue is estimated to have been going to the companies that operate the oilfields.

The issue is further complicated by the fact that OPEC has reduced Iraq’s national production quota to account for the oil output from KRG territory, roughly 300,000 barrels per day. This volume, reported by the oil companies operating in the region, effectively reduces the federal government’s production ceiling and thus carries a financial cost for Baghdad.

It remains to be seen how this accounting approach will affect the KRG’s allocation in upcoming annual budgets.