KRG Begins May Salary Distribution, Says 80 Billion Dinar Shortfall to Be Covered Through Loans

Peregraf- The Kurdistan Regional Government (KRG) announced that distribution of May salaries for employees and beneficiaries across the Kurdistan Region began Tuesday and will continue through Thursday, while revealing that more than 80 billion Iraqi dinars in missing federal funding would be covered through loans.

According to a statement from the KRG Ministry of Finance and Economy, salary payments started on May 26 and are scheduled to conclude on May 28, including during the Eid al-Adha holiday period.

The ministry said employees receiving salaries through cash payments should visit banks after 5:00 PM, while recipients using the MyAccount (Hezhmari Min) digital payment system can withdraw salaries from ATMs after 3:00 PM.

KRG Says Baghdad Sent Less Than Required

The ministry stated that after submitting the May payroll list and April financial reports to Baghdad last week, the KRG transferred 50 billion dinars — described as half of May's non-oil revenues — to the Iraqi Ministry of Finance in advance.

Despite this, the Iraqi federal government transferred only 890.5 billion dinars to Erbil, according to the ministry, while the total required amount for May salaries stood at more than 970.7 billion dinars.

According to the statement, the difference amounts to more than 80 billion dinars.

"This reveals that the Federal Ministry of Finance sent over 80 billion dinars less than the total required funding for the May salaries," the ministry said.

Shortfall to Be Covered Through Loans

The KRG Ministry of Finance and Economy stated that it decided to cover the funding shortfall through loans in order to ensure employees and beneficiaries receive their salaries before Eid al-Adha.

"To ensure that no beneficiary is left out or faces delays, the Ministry of Finance has decided to cover the funding shortfall by securing a loan," the statement said.

The ministry also criticized Baghdad's requirement that the KRG transfer half of May's revenues before the month had ended, describing it as an unusual accounting measure.

Salary Disputes Continue

The latest dispute comes amid continuing tensions between Erbil and Baghdad over salary payments, non-oil revenues, oil exports, and the implementation of financial agreements between the KRG and the Iraqi federal government.

In recent weeks, Iraqi officials signaled that Kurdistan Region employees and retirees might not receive May salaries before Eid al-Adha because of disagreements over required procedures and revenue transfers.