The Kurds had wanted the budget passed giving them 17 percent of allocations, which some Shi'ite and Sunni Arab MPs had said was too much based on current population estimates.
A compromise was reached on Sunday whereby the allocation would remain 17 percent for this year but then be reviewed once a proper census had been carried out.
The agreement had been to read each article of each law first and then vote on all three as a package. Despite that disputes broke out over the order of voting, several MPs said.
"The Kurds demanded the budget, the provinces law and the amnesty law be voted on at once," said Khalaf al-Alayal, a Sunni Arab lawmaker.
"We rejected this as we didn't want to equate the release of prisoners with a financial contract to please the Kurds."
Ula Talabani, a member of the Kurdish bloc, accused Sunni Arab and Shi'ite Sadrist MPs of conspiring to block the agreement reached on sharing out the national budget.
"There was a deal between them to vote on the amnesty law, and then withdraw before reaching the budget law. After we learned this, we refused to vote on the amnesty law," she said.
It was not clear how the impasse would be resolved, although parliament is set to meet again this week.
The U.S. government has long been pressing Iraq's leaders to make progress on the legislative front.
U.S. Defense Secretary Robert Gates, once highly critical of the slow progress toward political reconciliation, said en route to Baghdad on Sunday that Iraq's leaders "seem to have become energised in the last few weeks".
Parliament passed a law last month that will allow former members of Saddam Hussein's Baath party to regain their jobs in the government and military, a key demand of minority Sunni Arabs who were dominant under Saddam.
In Moscow, Iraq's Foreign Minister Hoshiyar Zebari said Iranian and U.S. officials would meet within days in Baghdad for a new round of talks as part of efforts to build on progress in stemming sectarian violence.
He also said he was confident Iranian President Mahmoud Ahmadinejad would go to Iraq next month, a visit that would be the first by a leader of the Islamic Republic but which could also irritate the United States.
