Peregraf
The Kurdistan Regional Government (KRG) spokesperson has issued a stark warning following an extraordinary meeting between Kurdish Members of Iraqi Parliament (MPs), KRG ministers, and Kurdish ministers from the Iraqi government. The meeting focused on unresolved issues such as delayed public salaries, the Kurdistan Region's financial entitlements, and federal budgetary policies.
"If Baghdad does not meet our demands, we may be compelled to make a decision that does not serve Iraq or the Kurdistan Region, and this will have consequences for the stability of the region," Peshawa Hawramani, the KRG spokesperson declared, signaling growing frustrations with the federal government.
Key Outcomes of the Meeting
The meeting outlined several pressing demands for Baghdad:
• Guaranteeing Salaries: KRG spokesperson, stressed that the 2025 salaries for KRG employees must be guaranteed by the Iraqi government without delays.
• Iraqi Budget Adjustments: The Kurdistan Region seeks amendments to the federal budget law to ensure the Kurdistan region's rights are upheld.
• Long-Term Financial Stability: For 2026, participants of the meeting demanded that Baghdad should allocate not just salaries but also the entire Kurdistan regional budget, adjusted according to the new census.
• Conveying Decisions to Baghdad: Kurdish ministers in Baghdad were instructed to deliver these demands directly to Iraqi federal authorities.
The KRG spokesperson also hinted at potential political decisions, including withdrawing from Iraq's political process, if these demands remain unmet.
Masrour Barzani’s Criticism of Baghdad
KRG Prime Minister Masrour Barzani opened the meeting with strong criticisms of Baghdad’s treatment of the Kurdistan Region. “There is oppressive behavior from Baghdad against the Kurdish people,” Barzani said. “We demand our constitutional rights. The Kurdish people deserve justice, not the continuous obstacles imposed on us.” Barzani called for unity among Kurdish factions, emphasizing that “solidarity is critical to counter Baghdad's policies”.
A Deepening Budget Crisis
The meeting comes as the Kurdistan Region faces a severe financial crisis, with December salaries still unpaid. According to the KRG Ministry of Finance, the 2024 budget of 11.57 trillion dinars is insufficient to cover salary requirements, which total over 12 trillion dinars annually.
• Baghdad disbursed only 10.75 trillion dinars in 2024, leaving an 823 billion dinar shortfall.
• For the final quarter of 2024, Baghdad allocated 1.83 trillion dinars, falling short by 1.16 trillion dinars.
Opposition Criticism
Opposition parties, including the New Generation Movement (NGM), Kurdistan Islamic Union (KIU), and Kurdistan Justice Group (Komal), boycotted the meeting and criticized the KRG’s financial management.
They highlighted gaps in salary payments, with KRG employees receiving salaries for only 11 months in 2024, despite Iraq’s allocation of sufficient funds. Opposition leaders also pointed to mismanagement of domestic revenues and oil sales, which they argue could have closed the salary deficit.
Strained Erbil-Baghdad Relations
The meeting's decisions will probably have significant implications for the already strained financial and political ties between Erbil and Baghdad. Observers warn that unresolved financial issues could exacerbate public dissatisfaction and deepen divisions.
Prime Minister Barzani’s government faces mounting pressure to secure consistent payments from Baghdad while addressing criticism of its handling of domestic resources. The situation remains fluid, with high stakes for both the Kurdistan Region and Iraq’s federal government.