Kurdistan Region's August Salaries Stalled as Baghdad Raises Concerns Over September Payroll

Peregraf

The Iraqi Ministry of Finance has transferred 755 billion dinars to the Kurdistan Regional Government (KRG) to facilitate salary payments for August. Additionally, the KRG expects to receive an additional 243 billion dinars from the Iraqi Ministry of Finance, which is essential for fulfilling the salary obligations of public employees in Kurdistan for that month.

Rebaz Hamlan, the Assistant of KRG Prime Minister for Economic Affairs, informed reporters that "The representative from the Ministry of Finance is currently in Baghdad working to address the situation. The sum of 243 billion dinars was expected to be transferred to the Ministry of Finance's account yesterday; however, it has not yet been dispatched. The salaries for August will be disbursed promptly upon the arrival of the funds."

Masrour Barzani’s aide stated that “Baghdad has raised concerns regarding the September payroll, particularly about certain promotions, and is requesting that the February payroll serve as the basis for salary distribution. However, this is deemed unfeasible due to monthly changes, and it appears to be merely an excuse to postpone salary payments”. The KRG has yet to make a decision regarding the distribution of August salaries with the funds sent from Baghdad. Hamlan emphasized that the Kurdistan Regional Government must reach a decision by today or tomorrow.

Concerning domestic and oil revenues, Rebaz Hamlan noted that “the KRG is remitting 50 percent of its domestic revenue to Baghdad. Furthermore, there are no oil revenues available due to the suspension of oil exports, leaving no alternative means to cover the deficit in August salaries”. Baghdad has expressed concerns about the reported oil revenue, and a US State Department official recently informed Rudaw that oil production levels in the Kurdistan Region have returned to pre-suspension levels, although the oil is currently being smuggled to Iran, with the revenue not benefiting either the Kurdistan Regional Government or the Iraqi Federal Government.

The KRG employs over 1.25 million salaried individuals. According to a ruling by the Federal Supreme Court of Iraq, the responsibility for their salaries lies with the Iraqi federal government, contingent upon several conditions and obligations imposed on the Kurdistan region. However, due to issues with the salary list and ongoing disputes between Erbil and Baghdad, the payment of salaries in the Kurdistan region remains problematic. The August salaries have yet to be distributed.