Kurdistan leadership to meet Sunday on budget dispute with Baghdad

14-11-2020
Dilan Sirwan
Dilan Sirwan @DeelanSirwan
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ERBIL, Kurdistan Region – The three presidencies of the Kurdistan Region – parliament speaker, prime minister’s office, and presidency – will meet on Sunday to discuss a contentious fiscal bill passed by the Iraqi parliament this week, according to a member of the Iraqi parliament.

Representatives of the three main Kurdish political parties were expected to also attend the meeting, but the Patriotic Union of Kurdistan (PUK) requested a postponement in order to invite all Kurdish parties that have representation in Baghdad and formulate a united stance. 

"Tomorrow, only the president, the prime minister, and the speaker of the parliament will meet and the party members will not attend the meeting," Viyan Sabri, a member of the Iraqi parliament, told Rudaw TV on Saturday evening. 

The Fiscal Deficit Coverage Bill was passed early Thursday morning, despite Kurdish MPs walking out of the legislature in protest. It allows Baghdad to borrow funds to pay public sector salaries for the rest of 2020. 

Under the legislation, the Kurdistan Region must hand over oil and border revenues in order to receive its share. Erbil wants to continue receiving monthly payments from Baghdad under the terms of the 2019 budget, which dictates it must hand over 250,000 barrels of oil daily to Baghdad in exchange for federal funds, which it has so far failed to do. Baghdad has operated under the 2019 budget after failing to pass a budget this year. 

Without payments from Baghdad, sporadic as they are, the Kurdistan Regional Government (KRG) is unable to pay its public sector salaries.

The PUK politburo, which met on Saturday afternoon in Sulaimani, said the KRG will live up to its agreements and called on Baghdad to abide by the principles of collaboration and the constitution of Iraq.

“As the PUK politburo, we consider continuous contact with the federal government in order to reach an agreement that would gain the people of Kurdistan’s rights and salaries as the best option,” read a statement published by the party’s media outlet.

The economies of both Iraq and the Kurdistan Region are heavily dependent on oil. Low prices coupled with the coronavirus pandemic have pushed both into economic crisis.

The budget has long been a sore point between Erbil and Baghdad, with the KRG accusing the federal government of denying their constitutionally recognized share.
 

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