ERBIL, Kurdistan Region - The Kurdistan Region’s most influential political party on Monday accused “certain authorities in Baghdad” of “disregarding the constitution” and “undermining federalism.” The Kurdistan Democratic Party’s (KDP) remarks come amid growing tensions with the federal government over its suspension of budget transfers to Erbil.
The KDP central committee said in a statement that “some of the rulers” in post-2003 Iraq “possess a mentality far removed from federalism and show tendencies toward restoring centralized state control.” The statement also accused these sides of using civil servant salaries and budget allocations to the Kurdistan Region “as leverage.”
The remarks come as tensions between Erbil and Baghdad have intensified following last Wednesday’s decision by the Iraqi finance ministry to halt all budget transfers to the Kurdistan Regional Government (KRG), including salaries for over one million public sector employees.
In a letter to the KRG, Iraqi Finance Minister Taif Sami claimed that Erbil had exceeded its 2025 budget allocation of 12.67 percent by 13.547 trillion Iraqi dinars (approximately $10.34 billion), arguing that further payments are legally prohibited under Federal Supreme Court rulings.
The move drew immediate condemnation from Kurdish political factions who held a meeting on Saturday, chaired by the ruling KDP, and denounced the funding suspension as politically-motivated.
Two days earlier, on Thursday, the KDP had issued a strongly worded statement censuring the federal government for “violating the constitutional rights of the Kurdistan Region.” It warned that “if the rights and financial entitlements of the people of the Kurdistan Region are not sent before Eid al-Adha [on June 6], we will take a serious stance and announce it.”
On Monday, the KDP’s central committee endorsed the political bureau’s position and praised other Kurdish parties for their unified response. It also welcomed what it described as “positive indications” from the Federal Supreme Court and elements within the federal government toward resolving the standoff.
The Federal Supreme Court announced on Sunday that it had registered a new lawsuit filed by public sector employees in the Kurdistan Region, seeking a legal injunction to guarantee continued salary payments. The court stated that a decision on the injunction request would be made “as soon as possible.”
It is worth noting that in February 2023, the same court issued a ruling explicitly stating that disputes over oil and non-oil revenues between Baghdad and Erbil must not be used as grounds to withhold constitutionally guaranteed monthly salaries.
The latest KDP statement notably echoed remarks made by the party’s leader Masoud Barzani, who underlined on Sunday that “post-2003 Iraq was founded on the principles of balance, compromise and partnership within the framework of the Constitution [of Iraq].”
The preeminent Kurdish leader asserted that “the only way to resolve Iraq’s problems is by adherence to these principles by all parties.”