Iraqi PM Rejects KRG’s Salary Demands, Cites Non-Compliance with Revenue Obligations

Peregraf 

Iraqi Prime Minister Mohammed Shia’ Al Sudani expressed disappointment with the Kurdistan Regional Government (KRG) over its handling of salaries, stating that beyond the 763 billion dinars allocated for October, the Kurdistan Region will receive no additional funds.

Responding to a query from Kurdish MP Soran Omar during a parliamentary session, Al Sudani clarified that “only 763 billion Iraqi dinars remain allocated to the Kurdistan region this year,” and there would be “no transfer from the investment budget to cover salaries.” He attributed the decision to the KRG’s failure to remit non-oil revenues, including taxes and customs, to the federal government.

The Iraqi Federal Ministry of Finance has already disbursed 761 billion dinars for October salaries, but the Kurdistan Region requires more than 900 billion dinars monthly to meet payroll needs. Al Sudani emphasized that the issue “is not political” but rooted in the KRG’s repeated non-compliance with budgetary obligations in previous years.

“Following the Federal Court’s ruling, we complied and disbursed the salaries,” Al Sudani said. “Of the Kurdistan Region’s 12.67% share of the federal budget, only 763 billion dinars remain this year, along with amounts already sent.”

No Transfers from Investment Budget

The Prime Minister dismissed the KRG’s request to reallocate investment funds to cover salary shortfalls, stating, “The KRG has fully received its salary allocation, and no transfer from its share is feasible.” According to Soran Omar, Al Sudani highlighted ongoing disputes over border revenues, taxes, and customs, blaming the KRG for its failure to meet its revenue-sharing obligations. Omar also suggested that amendments to the budget law—particularly regarding oil production costs—might alleviate salary delays for the next fiscal year.

Protests Erupt Amid Salary Delays

The prolonged delays in salary distribution have fueled unrest in the Kurdistan Region, where more than 1.25 million public sector employees and pensioners remain unpaid for October. While September salaries were distributed 47 days ago, public employees are now three days into December without payments.

Teachers in Sulaymaniyah have boycotted several schools in protest, causing widespread disruptions in education.

Despite a Federal Supreme Court ruling requiring the federal government to cover KRG salaries under certain conditions, ongoing disputes between Baghdad and Erbil and inefficiencies within the KRG payroll system have left public sector employees uncertain about when they will receive their wages.