Peregraf
The Kurdistan Regional Government (KRG) Council of Ministers, led by Prime Minister Masrour Barzani, has instructed the Ministry of Finance and Economy to commence the distribution of salaries immediately upon receiving additional funds from Baghdad.
During a meeting chaired by Prime Minister Barzani, the Council underscored that the KRG has diligently fulfilled its obligations and continues to collaborate with the federal government to secure salaries and financial entitlements for the Kurdistan Region. Despite these efforts, the KRG has not yet received salaries for October and November. According to the KRG, the Ministry of Finance has addressed all discrepancies in the salary lists and submitted them to the Federal Ministry of Finance.
However, in early December, Iraqi Prime Minister Mohammed Shia’ Al Sudani expressed disappointment with the KRG over its handling of salaries. He stated that beyond the 763 billion dinars allocated for October, November, and December, no additional funds would be provided to the Kurdistan Region this year. This decision is attributed to the KRG's failure to remit non-oil revenues, such as taxes and customs, to the federal government. The Kurdistan Region requires over 900 billion dinars monthly to meet payroll needs, but only 763 billion dinars remain allocated for the rest of the year. Al Sudani emphasized that the issue is not political but stems from the KRG's repeated non-compliance with budgetary obligations.
The KRG Council of Ministers has urged the Federal Council of Ministers to resolve the salary deficit in their upcoming meeting, invoking Article 60 of the Iraqi budget law. The KRG also expressed its appreciation for efforts at both federal and regional levels to address the salary issue.
The Cabinet has instructed the Ministry of Finance and Economy to distribute salaries as soon as any additional funds are received from Baghdad. Additionally, a KRG delegation is scheduled to visit Baghdad next week to discuss amendments to the federal budget and financial schedules for the 2025 fiscal year.
Information obtained by Peregraf indicates that the Iraqi Ministry of Finance has transferred 430 billion dinars to the Kurdistan Region to address the salary deficit for October, November, and December. The October salary schedule is ready and will be announced soon. The KRG Ministry of Finance expects to receive 760 billion dinars monthly for these salaries, although the full resolution of the salary deficit may require additional domestic revenue.
Reports suggest that the Iraqi Ministry of Finance has requested the KRG to remit its share of domestic revenue, which has not yet been sent for the second half of this year. KRG officials claim they remain committed to resolving these financial challenges and ensuring timely salary payments for employees, despite the lack of real action on the ground.
Teachers in Sulaymaniyah protested on December 7, 2024, demanding their overdue salaries for October, November, and December, and advocating for the implementation of Iraq's "Tawteen" salary domicilization program. They also opposed the KRG's "My Account" digital salary initiative. The protests followed a school boycott that has disrupted the education system. The Kurdistan Region's financial crisis has left over 1.25 million public employees and pensioners unpaid for October, leading to widespread demonstrations. Teachers, frustrated by the prolonged uncertainty, are urging authorities for an immediate resolution.
The Kurdistan Region requires over 900 billion dinars monthly for salaries, but Baghdad asserts that Erbil has already received its full federal budget share (12.67%). Delays and payroll inefficiencies have left public employees unpaid for nearly two months. The financial crisis has deepened tensions between Baghdad and Erbil, with both sides attributing blame. A Federal Supreme Court ruling mandates Baghdad to cover KRG salaries under specific conditions, yet revenue-sharing disagreements persist.