“Today, the first sum of money amounting to 200 billion dinars was transferred from the federal Iraqi government to the Finance and Economy Ministry’s bank account at Iraq’s central bank, Erbil branch,” the KRG's ministry announced in a Facebook post.
Last month, Iraq's parliamentary integrity committee announced that Baghdad will send 200 billion dinars a month to Erbil. Iraqi Prime Minister Mustafa al-Kadhimi later said the payment was an advance so the KRG could pay its civil servants.
Baghdad is yet to send Erbil’s share of the 2021 budget. Last month, the KRG said it was sending a report to Baghdad on the Region’s revenues, including oil, amid talks over budget implementation.
The budget was passed by the Iraqi parliament in late March after intense debate and more than three months after it was approved by the cabinet. One contentious point was Erbil’s share and requirements for the KRG to hand over oil.
The delay in implementing the budget has contributed to the KRG's difficulties paying its employees.
Baghdad sending the Kurdistan Region its budget share is conditional on Erbil fulfilling its commitments, which include handing over 250,000 barrels of oil per day, paying back the money it borrowed from the Iraqi Trade Bank, sending non-oil revenues and prioritizing paying the salaries of its civil servants and Peshmerga before any other spending.
