PM Barzani expects ‘good decisions’ from Baghdad regarding KRG’s share of federal budget

ERBIL, Kurdistan Region - Kurdistan Region Prime Minister Masrour Barzani on Thursday said that he is “very optimistic” that the Iraqi government will make “good decisions” regarding the Region’s disputed share of the federal budget during its next weekly meeting. The Kurdish premier led a top delegation from his cabinet to Baghdad earlier in the day, holding meetings with the Iraqi authorities and leaders of political parties.  

“We are hopeful,” Prime Minister Barzani told Rudaw’s Halkawt Aziz when briefing reporters about the result of his rare trip to Baghdad. “Let’s wait until all the meetings end. I am very very optimistic that good decisions will be made during [Iraq’] Council of Ministers’ meeting next week.”

Rudaw has learned that the next meeting of the Iraqi Council of Ministers will be held on Sunday. 

“We have talked about the procedures needed to, together with the [Iraqi] prime minister, gain the support of the political parties so that we can return with a good result for the people of Kurdistan,” Barzani told reporters. 

Barzani’s Kurdistan Democratic Party (KDP) - the main ruling party in the Kurdistan Region - is one of the members of the Shiite-led coalition that formed the incumbent cabinet. The Kurdish prime minister also met with leaders of some of the other members of the coalition. 

“I have returned to Baghdad for continued dialogue with Prime Minister @mohamedshia and leaders from across the political spectrum,” said Barzani in a post on X (formerly Twitter) after arriving in the Iraqi capital city. 

“Our aim is simple: defend the constitutional rights of the people in the Kurdistan Region of Iraq,” he added. 

During a meeting between Barzani and Sudani, both prime ministers stressed “the need to find a solution to the legal and financial problems between the federal government and the regional government in accordance with the constitution,” read a statement from Sudani’s office. 

The Iraqi government “is still working to ensure that requirements for decent living standards for Iraqi citizens are not affected, including the citizens of the Region,” the statement added.

After holding all meetings with the Iraqi officials and politicians, Prime Minister Masrour Barzani told reporters that they had suggested short-term and long-term solutions for Erbil-Baghdad budget dispute.

He added that they might need to try to change some laws in the Iraqi parliament for the long-term solution, noting that the Iraqi government will discuss their short-term solution during a weekly meeting on Sunday. 

The Iraqi parliament in June passed its highly-contentious budget bill for the years 2023, 2024, and 2025, of which the Kurdistan Region’s share is 12.6 percent. However, budget issues between both governments have not been resolved as Erbil continues to blame Baghdad for not sending the required funds to pay the Region’s civil servants. 

Meetings between delegations of the KRG and the federal government have been ongoing over the past months, aimed at resolving lingering disputes over the Region’s share in the federal budget.

Earlier this month, Baghdad decided to send 500 billion Iraqi dinars ($320 million) for the salaries of the public servants of the Region as a loan. The Kurdish government has yet to accept the offer, saying that the amount is insufficient as it needs 940 billion Iraqi dinars ($602 million) to pay its civil servants. 

The Kurdish government has failed to pay its civil servants on time and in full for nearly a decade due to the financial crisis. The public employees are yet to receive their July salaries. 

Updated at 12:39 am on September 15, 2023.