KRG Prime Minister Nechirvan Barzani said he was disappointed at the way the state budget was approved without meeting the Kurdish demands.
Speaking at a press conference on Sunday, Barzani hailed Kurdish attempts to save the Kurdistan Region share of the 2018 budget "despite all internal issues".
On Saturday, the federal parliament approved the 2018 budget, allocating only 12.64 percent as the Kurdistan Region's share. This stirred wide-spread anger among Kurdish powers.
Previously, Kurdistan got a 17 percent share of the state budget.
Following approving the budget, Kurdish MPs called on the KRG to withdraw from all political activities in Iraq immediately.
They also called on the Kurdish Iraqi President Fuad Masum to resign and leave Baghdad's green zone and return to Kurdistan.
However, Barzani voiced hopes dialogue with Iraqi PM Haider Abadi would resolve all pending issues.
He also pledged to pay the salaries of civil servants whatever the cost.