Peregraf
The Ministry of Finance of the Kurdistan Regional Government (KRG) has announced the resolution of a critical fund transfer issue, aiming to alleviate the ongoing salary deficit. After extensive efforts by the KRG’s technical team in Baghdad, the Iraqi Ministry of Finance has issued the necessary order to transfer funds from the Kurdistan Region’s budget allocation.
In a statement, the Ministry of Finance highlighted that the technical team successfully addressed the transfer issue during a visit to Baghdad. The December payroll was submitted to the Iraqi Federal Ministry of Finance, and on December 9, 2024, the General Directorate of Budget issued the transfer order. The ministry added that it remains actively engaged in ensuring the timely implementation of this decision to address the salary crisis.
Despite these efforts, significant financial challenges persist. The KRG distributed September salaries two months ago, but October payments remain overdue. Although Baghdad allocated over 760 billion dinars for October salaries, the total required amount exceeds one trillion dinars. Meanwhile, the KRG has been criticized for failing to cover the shortfall, despite generating domestic revenues and engaging in oil sales—reportedly including illicit tanker exports.
The prolonged delays have sparked widespread unrest among the 1.25 million public sector employees and pensioners in the Kurdistan Region. Teachers in Sulaymaniyah have boycotted schools in protest, disrupting education across the province.
Compounding the issue, disputes between Baghdad and Erbil over budget allocations and inefficiencies within the KRG’s payroll system continue to hinder progress. Although Iraq’s Federal Supreme Court ruled that Baghdad must cover the KRG’s salaries under specific conditions, many public sector employees remain uncertain about when they will receive their wages.