In a significant diplomatic move, a ministerial delegation from the Kurdistan Regional Government (KRG) is scheduled to visit Baghdad next week to resume discussions with the Iraqi federal government regarding budget-related matters. The delegation, led by Minister of Finance and Economy Awat Sheikh Janab, aims to address crucial issues, including the Kurdistan Region's public salaries and its share in the federal budget.

Peshawa Hawramani, the KRG spokesperson, highlighted the urgency of resolving these issues decisively during the upcoming talks. Among the key topics on the agenda is the Kurdistan Region's dissatisfaction with the federal government's failure to release the agreed-upon share in the budget. Despite the Kurdish region fulfilling its financial commitments, Baghdad's payments have fallen significantly short of initial commitments, according to KRG officials.

One of the contentious points revolves around the allegation that instead of allocating the proper budget share to Erbil, Baghdad has been providing allowances to cover public salaries. The KRG contends that the 500 billion dinars (over $384 million) received from Baghdad so far are insufficient to meet salary obligations.

The federal budget, adopted in early June and hailed as one of the country's largest, set state expenditures at 198.91 trillion Iraqi dinars ($153 billion), with a deficit exceeding 64 trillion dinars (over $48 billion). The Kurdistan Region's designated share in this budget stands at 12.67 percent, amounting to an annual allocation of more than $12 billion.

In addition to addressing budgetary concerns, the KRG delegation will engage in discussions related to the oil and gas draft currently being prepared by the federal government. The management of oil and gas resources has been a longstanding point of contention between Erbil and Baghdad, leading to the suspension of the Region's share in previous federal budgets.

This upcoming delegation marks the first of its kind in 2024, underscoring the significance both parties attach to finding a resolution to these longstanding financial disputes. As tensions persist, the success of these talks will be closely watched as they could have far-reaching implications for the economic stability of the Kurdistan Region and its relations with the federal government.