Iraqi parliament’s finance committee holds intensive meetings prior to voting on budget

ERBIL, Kurdistan Region — Iraqi parliament’s finance committee held intensive meetings with members of Prime Minister Mustafa al-Kadhimi’s cabinet on Sunday over the contentious and long-delayed federal budget bill, which will reportedly be voted on by lawmakers on Sunday, according to state media. 

Parliament’s second deputy speaker Bashir Al-Haddad chaired the meeting between members of the committee and a number of ministers for a detailed discussion of the bill’s articles.

Three months into 2021, a vote on the year’s budget has been delayed, which according to MPs speaking to Rudaw was a result of blocs failing to reach an agreement over the Kurdistan Region’s share. 

However, at a press conference after the meeting Haddad denied the Region’s share was not the reason for the delay.

"The article on the region's share in the draft law was not the reason for the delay in voting on the budget," Haddad claimed, adding that the Kurdistan Regional Government (KRG) "delegation agreed to the text that was agreed upon with the political blocs regarding the 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 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.  

Haddad said that the amendment has become an established article in the budget and cannot be easily amended or withdrawn.

"We demanded that the political forces settle disputes and pass the law in a manner that satisfies all parties and components and meets the needs of citizens in all governorates of Iraq," Haddad said of the meeting in a statement sent to the Iraqi News Agency. 

Kurdish MPs in Iraqi parliament have previously expressed their displeasure with the amendment of Article 11. 

"We consider this amendment as a violation of the agreement between the two sides, and a slight retreat by the Shiite blocs," deputy head of the Kurdistan Democratic Party (KDP) bloc Bashar al-Kiki told state media on Tuesday. 

The conditions that the Region receives its share of federal funding have been a point of contention between Erbil and Baghdad. The KRG, which relies heavily on Baghdad for public spending, has sent a delegation led by Deputy PM Qubad Talabani to Baghdad several times to try and resolve the issue.

Parliament will hold a special session on Sunday to vote on the draft federal budget bill of 2021, according to state media.

At the press conference, Haddad also revealed that the government and most of the finance committee prefers to keep the US dollar - Iraqi dinar exchange rate as it is, just two days after Iraqi militia Rab’Allah paraded through Baghdad in a show of force demanding the cancelation of a devaluation of the dinar against the dollar introduced last December. 

Samir Hawrami, spokesman for the Kurdistan Region's Deputy Prime Minister Qubad Talabani, told Rudaw that the KRG has sent its delegation back to Baghdad Saturday night.