ERBIL, Kurdistan Region - The Iraqi Federal Supreme Court on Wednesday ruled that Baghdad’s payment of the Kurdistan Region’s financial entitlements violates the budget law.
Iraqi parliament in March 2021 passed a budget law after months of contention over the Kurdistan Region’s share of the federal budget. However, the law was not fully implemented, with Erbil and Baghdad blaming one another for failure to comply with the law.
Baghdad has sent a 200 billion IQD ($125 million)monthly financial entitlement to the Region a few times since then. The newly-formed Iraqi cabinet, headed by Mohammed Shia’ al-Sudani, recently approved the payment of 400 billion IQD ($250 million) to the Region for November and December months of the last year.
However, Iraq’s Federal Supreme Court on Wednesday ruled against the pending payment and the previous ones to the Region, saying it goes against the 2021 budget law. This followed a complaint by Wasit Governor Mohammed Mayahi and independent member of Iraqi parliament Mustafa Sand.
Sand said in a video that the ruling is a “historical” one, adding that he does not want to target the Region or any officials but seeks the implementation of the Constitution.
Iraq has not passed any budget laws since 2021 but talks are ongoing regarding the 2023 budget law.
The budget has been a point of contention between Erbil and Baghdad for several years, especially after the Kurdistan Region's decision to sell its oil through Turkey.
Masoud Barzani, leader of the Kurdistan Democratic Party (KDP), slammed the court decision, describing it as “another adversary position against the Kurdistan Region.”
“The point is not the amount of the money but the violation of rights and principles,” he said, adding that the participation of Kurds in the new Iraqi cabinet was based on a “clear and detailed agenda,” including Baghdad’s sending of the Region’s financial entitlements.
He noted that the court ruling is against both the Region and the current Iraqi cabinet, calling on the Iraqi government and ruling parties to oppose the ruling.
Kurdistan Regional Government (KRG) said in a similar statement late Wednesday that they reject the decision, calling on Sudani's cabinet not to implement it. It blamed the court for harming recently-improved relations between Erbil and Baghdad through such a ruling.
President Nechirvan Barzani said in a statement that the Iraqi top court's decision is "completely unfair."
He added that people expected from the court to "preserve the interest of all [ethnic and religious] groups in Iraq ... rather than damaging the opportunity and the positive atmosphere that has been created to resolve Erbil-Baghdad issues."
Updated at 11:40pm
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