Peregraf
The Kurdistan Regional Government (KRG) and the Iraqi Federal Government are currently engaged in a dispute concerning the disbursement of salaries to public employees and the sharing of non-oil revenues. Both parties have issued statements presenting differing accounts of the situation.
KRG's Position
On 14 January 2025, the KRG's Ministry of Finance and Economy released a statement addressing the Federal Ministry of Finance's claims regarding salary payments to KRG employees.The KRG contends that the federal ministry has not adhered to the Federal Supreme Court's decisions concerning the timely disbursement of salaries.They assert that the federal ministry transferred IQD 10,026,883,844,549, which is IQD 822,642,015,037 less than the allocated amount of IQD 11,576,521,335,000 specified in Table (E) of the 2024 Federal Budget.
Regarding non-oil revenues, the KRG reports generating IQD 4,347,484,382,654 up to 30 November 2024.They claim to have transferred IQD 399,168,964,500 to the federal ministry, in line with an agreement to deposit 50% of non-oil federal revenues starting May 2024.The remaining funds were utilized for operational expenses, investment projects, and to cover salary deficits attributed to the federal ministry's policies.
The KRG also highlights issues such as the selective implementation of the Unified Retirement Law by the federal ministry, obstacles in disbursing the region's entitlements, and delays in salary payments.They emphasize their commitment to the salary domiciliation process through the "Hazhmari Mn" project, with approximately 750,000 employees registered, of whom 220,000 receive their salaries via this system.
Iraqi Federal Government's Position
In contrast, on 12 January 2025, the Iraqi Federal Ministry of Finance issued a statement affirming its commitment to implementing the Federal General Budget Law No. (13) of 2023.They assert that they have fully financed the salaries of KRG employees as per Table (E) of the budget, amounting to a total of IQD 11,561,522 billion for 2024.The ministry specifies allocations for various categories, including civil departments, security forces, retirees, and social protection beneficiaries.
The federal ministry criticizes the KRG for not distributing salaries to employees on a monthly basis, despite receiving the necessary funds.They attribute the delays to the KRG's non-compliance with the Federal Supreme Court's ruling, which mandates the domiciliation of salaries for public sector employees and pensioners in alignment with the federal government's Tawteen program.
Additionally, the federal ministry points out that the KRG has not transferred non-oil revenues, amounting to IQD 4,350 billion, as required by the court's decision. They urge the KRG to ensure the consistent and prompt disbursement of salaries in accordance with legal requirements.
Comparison of Allocations and Transfers
Comparison of Allocations and Transfers:
1. Total Allocated for 2024:
o The Iraqi Federal Ministry of Finance reports allocating IQD 11,561,522,000,000 for the Kurdistan Region in 2024.
o The KRG states receiving only IQD 10,026,883,844,549, which is IQD 1,534,638,155,451 less than allocated.
2. Non-Oil Revenues to Be Transferred:
o The federal ministry claims the KRG is required to transfer IQD 4,350,000,000,000 in non-oil revenues.
o The KRG reports transferring IQD 399,168,964,500 and using the remaining funds for operational and salary deficit needs.
This discrepancy in financial figures highlights the core issues at the heart of the ongoing dispute between the two governments.
Conclusion
The conflicting statements from the KRG and the Iraqi Federal Ministry of Finance highlight ongoing disagreements over financial entitlements, revenue sharing, and the implementation of legal decisions. The KRG accuses the federal ministry of underfunding and creating obstacles, while the federal ministry criticizes the KRG for non-compliance with revenue transfers and salary distribution protocols. This dispute underscores the complexities of fiscal federalism in Iraq and the challenges in ensuring equitable resource distribution among its regions.