ERBIL, Kurdistan Region – Kurdistan Region leaders have voiced hope of better relations with the federal government following a Tuesday decision to restore budget payments to Erbil as the Iraqi parliament’s integrity committee says it is a violation of federal law.
“We hope this will be a turning point in our relations with Iraq and a major step towards overcoming the challenges the Kurdistan Region has faced," said Qubad Talabani at the HITEX conference in Erbil on Wednesday, thanking the Iraqi Council of Ministers and the federal government.
Kurdistan Region Prime Minister Masrour Barzani announced late on Tuesday that his government reached an agreement with Baghdad regarding sending the Kurdistan Region’s share of the general budget for 2021, which has so far been delayed.
“I’m pleased to announce we’ve reached a deal that will see federal budgetary payments restored to the KRI and backdated to Jan 2021,” he said.
Iraq’s parliamentary integrity committee, in a statement obtained by Rudaw English, says Baghdad will send 200 billion dinars per month to Erbil.
“If the Iraqi government sends the Kurdistan Regional Government's budget share, a door of trust will open to resolving other issues between Baghdad and the Region because, in addition to the financial issues, there have been other issues between the two," said Peshawa Hawramani, the spokesperson of the KDP faction in the Kurdistan Region's parliament, in a press conference on Wednesday.
"The people of the Kurdistan Region suffered a lot as a result of this illegal decision [to cut the budget share]," he added.
The budget has been a problematic issue between Erbil and Baghdad. The 2021 budget was passed by the Iraqi parliament in late March after intense debate more than three months after it was approved by the cabinet. One contentious point was Erbil’s share and requirements for the Kurdistan Regional Government (KRG) to hand over oil.
At the time, Kurdish and Iraqi officials voiced hope that the agreement would pave way for better relations between Baghdad and Erbil.
On Wednesday, however, Baghdad’s integrity committee said the decision, which will send funds with “retroactive effect,” is a violation of Article 11 of the Federal Budget Law.
The committee warned "against taking this step in violation of the law, and calls on the public prosecution to take the necessary action in the event of the release of these funds." The committee also called on the Council of Ministers to be careful in issuing decisions and to indicate their compliance with the laws in force.
Article 11 requires Erbil to hand 250,000 barrels of oil over to Baghdad, and send half of its non-oil revenues to the state treasury in exchange for funds.
Two Kurdish members of the committee responded to the statement, which they said they “vehemently reject.”
“Since the law is for the whole year of 2021, the money must be calculated and sent from the beginning of the year," said Jamal Shukir and Rebwar Karim Mahmood.
Shiite lawmakers are unhappy with the Kurdistan Region’s share and Erbil’s independent oil sales. Disputes over Article 11 were one of the main factors delaying a parliamentary vote on the budget.
Earlier this month, the KRG said it was sending a report to Baghdad on the Region’s revenues, including oil, amid talks over budget implementation.
Because of the budget disputes and financial woes, the KRG has been unable to pay its civil servants on time or in full. Parliament speaker Rewaz Fayaq told Rudaw on Monday that the legislature will not sit again except to discuss the budget and salaries.
