KRG demands four months of budget share in official letter to Baghdad

26-11-2020
Khazan Jangiz
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ERBIL, Kurdistan Region  Kurdistan Regional Government (KRG) ministers decided on Wednesday to send an official letter to Baghdad demanding the Region’s budget share for four months of this year, according to a government statement.

The KRG Council of Ministers held a meeting on Wednesday and “decided to send an official letter to Iraq’s Council of Ministers demanding the Kurdistan Region’s budget share for the months of May, June, July, and October,” the KRG said in the statement.

They added that the delay of the budget share payment has nothing to do with the recent passing of a contentious fiscal deficit law, and is “a violation of the Kurdish people’s legitimate rights."

Erbil and Baghdad signed an agreement in August, compelling Kadhimi's cabinet to send 320 billion dinars ($268 million) every month, which has so far yet to be sent on time. 

The Kurdistan Region is heavily dependent on its share of the Iraqi budget, and the KRG has said it cannot pay civil servants without its fair share of federal government money. 

In December 2019, Baghdad agreed to send Erbil a 12.67 percent share of the federal budget in exchange for 250,000 barrels of oil per day, but the deal failed to be implemented.

Budget transfers to the KRG were halted in mid-April in a decision made by Iraq's former Prime Minister Adil Abdul-Mahdi, with the KRG again struggling to pay its civil sevants. Several delegations have visited Baghdad in attempts to resolve the issue.

The council also praised Jeanine Hennis-Plasschaert, head of the UN Assistance Mission in Iraq (UNAMI) for her stance on the issue.

“The payment of public civil servants should be shielded from political disputes; they cannot and should not be collectively victimized. A solution is urgent, and political will to find a way out will - once more - prove essential,” Hennis-Plasschaert said on Tuesday during a virtual briefing of the UN Security Council. 

KRG President Nechirvan Barzani praised Hennis-Plasschaert on Wednesday for her comments.

“I welcome the engagement of international community to help in this regard,” he tweeted.

“We are optimistic that Baghdad will send the 320 billion Iraqi dinars in the next few days,” KRG spokesman Jotiar Adil told Rudaw on Wednesday, saying the government “will have other alternatives” if needed.

 

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