In a controversial move, the Iraqi Ministry of Finance has disbursed approximately 568 billion dinars to the Kurdistan Regional Government (KRG) in a manner that contradicts the Iraqi three-year budget law, according to sources familiar with the matter.

The disbursement, carried out in four separate lists, targeted the salaries of KRG civil servants, raising eyebrows among Kurdistan officials. Notably, the disbursement method involved sending money in installments, which directly contravenes Article 13 of the Iraqi three-year budget law.

The four lists encompassed various sectors, including civilian and military pensions, the social protection network, relatives of martyrs, and numerous ministries and departments. However, glaring omissions were observed as funds were not allocated to vital entities such as the Peshmerga forces, the Ministry of Interior, and the Kurdistan Region’s Security Agency (Asayish) by the central government.

Under Article 13 of the Iraqi three-year budget law, the federal government is obliged to provide financial entitlements to the Kurdistan Region after the delivery of 400,000 barrels of oil per day by the region. However, the recent disbursement method has sparked concerns among KRG officials, who argue that it violates the stipulations of the budget law.

Efforts to rectify the situation have been made, with the Kurdistan Regional Government submitting a salary list to the Iraqi Ministry of Finance. Nonetheless, Baghdad's persistent adherence to the irregular disbursement method has cast doubt on the future of the process, prompting apprehension among Kurdish parliamentarians.

Sipan Sherwani, a Kurdish parliamentarian in the Iraqi parliament, voiced apprehensions regarding the Ministry of Finance's unconventional approach, cautioning against potential arbitrary actions in future salary disbursements. The unresolved issue underscores the ongoing tensions between Baghdad and the Kurdistan Region, posing challenges to financial stability and regional cooperation.