In a statement released on Wednesday, the Kurdistan Regional Government (KRG) expressed dissatisfaction with Baghdad's partial release of 598 billion dinars (nearly $456 million) as the Kurdish share in the budget. According to KRG Spokesperson Peshawa Hawramani, this amount falls significantly short of the required sum to pay the Kurdish public salaries.

KRG officials emphasized that they need 912 billion dinars (over $690 million) from the Iraqi Ministry of Finance to adequately cover the salary payments. The KRG's Prime Minister, Masrour Barzani, has ordered the cabinet to immediately address the deficit and ensure the long-overdue payment of public salaries, which have not been released since June.

Iraqi Prime Minister Mohammed Shia’ Al-Sudani had previously announced that the government would release part of the Kurdish financial entitlements, but the exact amount was not specified. The situation has led to ongoing talks between Erbil and Baghdad to resolve outstanding issues and implement the budget law, which was approved in early June.

The Kurdish Council of Ministers convened in Erbil on Wednesday to discuss the budget implementation and the ongoing negotiations with Baghdad. The Iraqi budget, passed in June, sets state expenditures at 198.91 trillion Iraqi dinars ($153 billion) with a deficit exceeding 64 trillion dinars (over $48 billion). The Kurdistan Region is entitled to receive 12.67 percent of the federal budget, amounting to more than $12 billion annually. However, the current release falls far short of the Region's financial needs, prompting urgent action to address the situation.