A high-level delegation from the Kurdistan Regional Government (KRG) is set to visit the Iraqi capital, Baghdad, on Wednesday to engage in crucial discussions regarding the region's share in the federal budget. This visit follows the postponement of their initial plans, which were delayed due to the unfortunate passing of the federal oil minister's father.

According to an informed source, the primary focus of the KRG delegation's discussions will revolve around two critical aspects: the allocation for public salaries within the Kurdistan Region and the share it is entitled to from the federal budget. These matters have gained prominence due to delays and complications since the budget's adoption back in June.

The federal budget, considered one of the largest in the country's history, outlines state expenditures amounting to a staggering 198.91 trillion Iraqi dinars, equivalent to $153 billion, albeit bearing a substantial deficit of more than 64 trillion dinars, which surpasses $48 billion.

The Kurdistan Region's share in this extensive federal budget is clearly defined, standing at 12.67 percent, which translates to an annual allocation of more than $12 billion. However, complications have arisen as Baghdad has thus far failed to implement this allocation appropriately. Instead of releasing the Kurdish share, the federal government has disbursed allowances to Erbil, aiming to cover public salaries within the Region. This move has raised concerns, with KRG officials contending that the provided 500 billion dinars (equivalent to over $384 million) are insufficient to meet the Region's salary obligations.

It is worth noting that discussions involving KRG officials and Iraqi ministers have frequently centered around issues related to oil and gas management. These contentious matters have persisted for over a decade and have, in the past, led to the suspension of the Kurdistan Region's share in previous federal budgets.

This visit by the KRG delegation to Baghdad underscores the ongoing complexities and challenges in the relationship between the Kurdistan Region and the federal government, particularly concerning the equitable distribution of funds and the management of valuable oil and gas resources. As both parties seek to find common ground and resolve these issues, the outcome of their discussions in the coming days will undoubtedly have significant implications for the Region's financial stability and its role within the wider Iraqi state.