PM: Money sent to Erbil is an advance, not part of budget

25-06-2021
Sura Ali
Sura Ali
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ERBIL, Kurdistan Region— Reports on Baghdad sending a budget of 200 billion dinars per month to Erbil are incorrect, Iraqi Prime Minister Mustafa al-Kadhimi said on Thursday, explaining that the money is an advance to the Kurdistan Region in order to pay the salaries of its citizens. 

Earlier in June, Iraq's parliamentary integrity committee announced that Baghdad will send 200 billion dinars a month to Erbil, according to a statement obtained by Rudaw English.

“If the Iraqi government sends the Kurdistan Regional Government's (KRG) budget share, a door of trust will open to resolving other issues between Baghdad and the Region because, in addition to the financial issues, there have been other issues between the two," said Peshawa Hawramani, the spokesperson of the KDP faction in the Kurdistan Region's parliament, in a press conference June 16.

"First of all, the Kurdish people are our people. We did not pay the region's budget, however we paid an advance for the purpose of paying the salaries of the region's employees. It is unreasonable for the region's employees to be without salaries," Kadhimi said on Thursday.

"Talking about paying a budget and non-compliance [of the KRG] is incorrect, and this is a political attempt for election purposes to stir up citizen’s emotions,” Kadhimi added.

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 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.

Earlier this month, the KRG said it was sending a report to Baghdad on the Region’s revenues, including oil, amid talks over budget implementation.

Because of the budget disputes and financial woes, the KRG has been unable to pay its civil servants on time or in full.
 

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