ERBIL, Kurdistan Region - The Iraqi government spokesperson said on Friday that the federal government had fulfilled its financial obligations towards the Kurdistan Region, accusing Erbil of not complying with the budget requirements.
In a statement on X (formerly known as Twitter), Iraqi government spokesperson Basem al-Awadi stated that Baghdad had “fully implemented its financial obligations” towards Erbil. This comes several days after the Kurdistan Regional Government (KRG) said it had not received enough money to pay salaries.
“By the end of June, the funds owed by the region [Kurdistan Region] amounted to more than three times the region’s share in the Budget Law,” Awadi said.
Earlier this week, Baghdad decided to send 500 billion Iraqi dinars (close to $382 million) for the salaries of the public servants of the Region, but the Region’s finance ministry is yet to announce receiving the payment.
“The Iraqi government has not abided by its agreements with the Kurdistan Region… not only it has not sent the share of the Kurdistan Region, it also did not send the salaries of the public servants… We feel like this is a policy of starvation,” Pehsawa Hawramani, the spokesperson of the KRG, said during a televised address in Erbil earlier this week.
Meetings between delegations from the KRG and the federal government have been ongoing over the past months, aimed at resolving lingering disputes over the Region’s share in the federal budget.
“Despite the regional government’s lack of commitment, the federal government took it upon itself not to burden the Iraqi citizens of Kurdistan with KRG’s non-compliance,” the statement added, noting that Baghdad would loan funds to Erbil.
Awadi also said the KRG had failed to “hand over oil and non-oil revenues as it was required according to the Federal Budget Law.”
Iraq’s federal finance ministry on Tuesday announced it will be signing a “loan agreement” with the KRG in order to help pay salaries, adding that Erbil’s dues will be settled after it complies with its obligations within the budget. The agreement will be signed between the KRG finance ministry and Iraq’s Rafidain and Rasheed banks.
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.
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.
