Exclusive: Kurdistan Region’s non-oil revenues can’t cover employee salaries
Shafaq News/ The Kurdistan Regional Government (KRG) requiresone trillion Iraqi dinars per month ($762.861 million) to pay salaries for itsemployees and retirees, an Iraqi MP revealed on Tuesday.
The member of the Iraqi Parliament's Finance Committee, NerminMaarouf told Shafaq News, “After the Paris Court's decision to halt oilexports, the region now relies solely on non-oil revenues to fund itsinvestment projects and cover operational expenses for its internalinstitutions.”
“If not for the Federal Supreme Court’s ruling requiring thefederal government to pay salaries for employees and retirees in the region,the KRG would have had to fund these salaries from its limited revenues,” theIraqi MP explained.
She referred to Article 121 of the constitution, whichstipulates a fair share of federal revenues for all provinces, adding that theFinancial Management Law, particularly Article 29, obligates the KRG andprovinces to remit part of their local revenues, including taxes and customs,to the federal treasury.
According to the Federal Board of Supreme Audit, the KRG'snon-oil revenues amounted to around 4 trillion dinars, while Iraq’s totalnon-oil revenues did not exceed 12 trillion dinars.
Regarding the amount received from the federal government, Maaroufrevealed, “The KRG received less than 11 trillion dinars of employee andretiree salaries,” pointing out that salaries for December had not been paidyet.
On Tuesday, The Financial Committee in the Iraqi Parliamentdecided to form a special committee to follow up on the financial entitlementsof the Kurdistan Region for the years 2024 and 2025.
According to a letter signed by the head of theParliamentary Finance Committee, Atwan Al-Atwani, dated January 11, thecommittee will be led by his first deputy, Ahmed Muthar Al-Jubouri.
The salary issue inthe Kurdistan Region has remained unresolved for years due to ongoing disputeswith the federal government. Each year, the matter resurfaces during theapproval of the federal budget, which ties the Region’s share to conditions,particularly the transfer of oil revenues. Over the past two years, followingthe suspension of the Region's oil exports through the Turkish port of Ceyhan,the federal government has been providing salaries as loans.
In February, theFederal Supreme Court directed Baghdad to pay the salaries of the KurdistanRegion’s employees directly, by passing the Kurdistan Regional Government,after months of salary delays.
In Parliament, theIraqi PM emphasized that the salary issue is not political but noted that theKurdistan Region has failed to meet any of the clauses in the Budget Law. Hefurther stated that no additional transfers would be made for the Region’ssalaries and confirmed that only 760 billion dinars (approximately 608 millionUSD) would be disbursed, corresponding to the Region’s fixed share of 12.67%.
