Peregraf
The Kurdistan Regional Government (KRG) Ministry of Finance has released a statement addressing the ongoing delays in salary distributions, highlighting significant budgetary challenges. According to the statement, while the KRG’s 2024 budget was set at 11.57 trillion dinars, actual salary requirements exceeded 12 trillion dinars, resulting in a shortfall exacerbated by the federal government's disbursement of only 10.75 trillion dinars—823 billion dinars less than needed. Additionally, for the final quarter of 2024, the Iraqi Ministry of Finance allocated just 1.83 trillion dinars for salaries, leaving a deficit of over 1.16 trillion dinars, further straining the region’s financial capacity to meet obligations.
The ministry announced that the distribution of November 2024 salaries will begin early next week, contingent upon the arrival of 441 billion Iraqi dinars, a portion of the funds recently decided by the Iraqi government. The ministry emphasized its commitment to securing December salaries, which it insists remain the responsibility of the federal government under constitutional provisions and the federal budget law. Despite a Federal Court ruling mandating salary payments to KRG employees, the federal government has been accused of failing to send the full financial entitlements owed to the region.
Ali HamaSaleh, a member of the Kurdistan Parliament, responded to the statement issued by the KRG Ministry of Finance, which indicated that the Kurdistan Regional Government (KRG) should have disbursed salaries to its employees for all twelve months. According to the ministry's own account, the Iraqi government has allocated approximately 11 trillion dinars for this purpose. However, HamaSaleh pointed out that the KRG has only transferred less than 400 billion dinars to the Iraqi government as domestic revenue. He emphasized that the full amount of Iraqi funds has not been distributed, with only ten months' salaries being paid out, despite the possibility of distributing twelve months' salaries using the domestic revenue that has not been returned to Iraq.
The parliamentarian further criticized the Ministry of Finance for its reluctance to address the issue of oil revenues, stating that the Kurdistan Region produces 350,000 barrels of oil daily, which are sold via tankers. He lamented that not a single dinar from the oil revenue has been allocated for salaries or development projects.
Key Points from KRG Ministry of Finance Statement:
- Budget Discrepancies:
- The KRG’s allocation for 2024 was set at approximately 11.57 trillion dinars, but actual salary needs exceeded 12 trillion dinars.
- The federal government disbursed only 10.75 trillion dinars, leaving an 823 billion dinar shortfall.
- Use of Internal Revenues:
- Since May 2024, the KRG has transferred nearly 400 billion dinars in internal revenue to the federal treasury.
- An additional 960 billion dinars from internal revenue was used to fill gaps in salary funding due to federal budget cuts.
- Unpaid Salaries:
- For the last three months of 2024, the Iraqi Ministry of Finance provided just 1.83 trillion dinars, leaving a deficit of over 1.16 trillion dinars in salary funding.
- Challenges with Pension and Contract Teacher Payments:
- Pension equalization under Iraqi law, funded entirely from KRG internal revenue, remains unmet by the federal government, totaling 60 billion dinars monthly.
- Contract teacher salaries, totaling 20 billion dinars monthly, are also funded locally.
- Budget Law Provisions:
- The KRG called for the federal government to utilize Article 60 of the budget law, granting the Iraqi Prime Minister authority to address salary deficits.
The KRG underscored that its technical teams had resolved all discrepancies in salary records and cooperated extensively with federal counterparts. Despite these efforts, promises from Baghdad to address funding issues have yet to materialize fully. As public employees face continued uncertainty, the KRG appealed to the federal government to honor its constitutional obligations and ensure financial stability for the region.