Iraq Says KRG Has Received Full Budget Allocation, Eight Months of Salaries at Risk

Peregraf 

The Iraqi Minister of Finance has officially informed the Kurdistan Regional Government (KRG) that the federal government has completed its financial allocation of 12.67% for the salaries, as stipulated by the three-year budget law. However, the KRG has yet to distribute salaries for the month of May, raising concerns over the fate of public sector salaries for the remainder of the year.

According to Iraqi MP Soran Omar, the Finance Ministry’s letter No. 14502, issued on Tuesday, confirms that Baghdad has fulfilled its budgetary commitment to the KRG based on the 12.67% share outlined in the budget law covering 2023, 2024, and 2025.

“The Ministry of Finance has calculated all the oil and non-oil revenues of the Kurdistan Region and what has been sent to Erbil,” Omar stated, adding that, “In 2024, this situation occurred in October, but this year it has come earlier—in May.”

The letter has sparked alarm as it implies that no further financial transfers from Baghdad are guaranteed for the remainder of 2025, effectively putting the next eight months of salaries for KRG employees in jeopardy unless the KRG finds alternative funding sources.

Omar also criticized the KRG for mismanaging regional revenues, particularly oil proceeds, which he described as “unknown and unaccounted for.” He added that only one-fifth of domestic revenues from the Kurdistan Region are being transferred back to Baghdad, in violation of the budget agreement.

“The irresponsibility in handling oil revenues and the failure to ensure transparency has put the livelihoods of hundreds of thousands of public servants at risk,” he warned.

There has been no immediate response from KRG officials regarding the delay in May salaries or plans to address the potential shortfall for the remainder of the year.