Meetings between delegations from the KRG and the Iraqi federal government have been ongoing over the past months, aimed at resolving lingering disputes over the Region’s share in the federal budget.
On Wednesday, Iraq’s finance ministry announced it will sign a “loan agreement” with the KRG to pay the salaries of its employees, saying that Erbil will receive its dues once it complies with its obligations within the budget.
The KRG Council of Ministers, chaired by Prime Minister Masrour Barzani, convened on Wednesday to call on Baghdad to pay the Region’s financial dues according to agreements in the budget, two days after it said that the 500 billion IQD (roughly $382 million) provided by Baghdad was not enough to meet the needs of the Region.
“Baghdad must send the financial dues of the Kurdistan Region monthly according to the budget of one trillion and 375 billion dinars, of which 906 billion dinars are allocated for salaries, so that the Kurdistan Regional Government can pay the salaries,” the KRG said in a statement.
“What causes concern and regret is the delay in distributing the region’s salaries for two months due to Baghdad not sending salaries even though the Region fulfilled all its obligations towards the federal government within the framework of the budget law and the constitution,” it added.
The KRG has failed to pay its civil servants on time and in full for several years due to the financial crisis. Public sector employees have not been paid for the months of July and August following several failed deals with Baghdad.
During the meeting, the Council of Ministers called on political parties in the Region to “unify their voice and positions in defense” of the Kurdistan Region’s constitutional rights, while also urging parties within the State Administration Coalition that formed the Iraqi government of Prime Minister Mohammed Shia’ al-Sudani to adhere to previous agreements that were a prerequisite to the government’s formation.
Iraq passed its highly-contentious budget bill for the years 2023, 2024, and 2025 in June, which includes a record $152 billion in spending, of which the Kurdistan Region’s share is 12.6.
