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ERBIL, Kurdistan Region — The Kurdistan Regional Government (KRG) delegation will return to Baghdad soon to resume dialogue regarding the Kurdistan Region's share in the 2021 budget, Samir Hawrami, spokesperson for the Deputy Prime Minister of the Kurdistan Region, told state media on Tuesday.
Erbil relies heavily on Baghdad for its funds, but the question of oil-for-budget has been a thorny issue between both sides. A KRG delegation led by Deputy PM Qubad Talabani has visited Baghdad several times to try and resolve the issue.
The Iraqi parliament on Saturday postponed a vote on the 2021 budget after failing to reach an agreement between blocs over the Kurdistan Region's share.
Shiite parties added amendments to Article 11 of the bill, which dictates the Kurdistan Region's share of federal funds.
The new amendment would require the Kurdistan Regional Government (KRG) to hand over the value of 250,000 barrels of oil a day to Baghdad, in addition to all non-oil revenues, such as custom fees and taxes.
"We consider this amendment as a violation of the agreement between the two sides, and a slight retreat by the Shiite blocs," The deputy head of the Kurdistan Democratic Party (KDP) bloc, Bashar al-Kiki told state media on Tuesday.
Kiki confirmed that the Parliamentary Finance Committee adheres to the text of Article 11 voted upon, and it will be presented without amendments.
Member of the Parliamentary Finance Committee, Muhammad Ibrahim, told said that it is unlikely the budget will be passed in one session.
Iraqi lawmakers have criticized the Kurdistan Region's independent oil sales, with many wanting Erbil to hand over all of its oil to the State Organization for Marketing Oil (SOMO) in exchange for federal funds.
Both governments have also seen revenues drop due to low oil prices last year. The KRG is unable to pay its civil servants on time and in full, while the Iraqi government took out loans from the Central Bank to pay salaries for the last three months of 2020. Baghdad also devalued the dinar in December.
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