Erbil, Kurdistan Region – The Kurdistan Regional Government (KRG) on Thursday criticized the Iraqi federal government for failing to send the necessary financial entitlements, leading to unpaid salaries for civil servants in the Kurdistan Region for November and December.

In a statement from the KRG’s finance ministry, the regional government accused Baghdad of violating constitutional rights.
“The federal government is violating the constitutional rights of the people of the Kurdistan Region and is not ready to send the financial entitlements of the Kurdistan Region in full,” the statement read.

The KRG, which relies heavily on its share of the federal budget, stated that its 2024 budget allocation is approximately 11.5 trillion dinars, while it requires 12 trillion dinars to meet its needs. Baghdad has sent only 10.7 trillion dinars, resulting in an 823 billion dinar shortfall, according to the ministry.

“The federal government wants to make the Kurdistan Region’s civil servants victims of its problems and excuses,” the statement claimed, rejecting accusations that the issue arises from the KRG’s failure to transfer domestic revenues to the federal government.

The statement referenced a February ruling by Iraq’s Federal Supreme Court, arguing that the federal government misunderstands the financial arrangements. The ministry explained that a 239 billion dinar shortfall in October salaries was covered using domestic revenue, and that the KRG had requested nearly one trillion dinars for November and December salaries. However, Baghdad sent only 631 billion dinars and allocated 441 billion dinars for each of the two months.

The KRG insisted that securing December salaries remains the Iraqi government’s responsibility, calling for immediate action to address the situation.

Iraq’s Prime Minister Mohammed Shia’ al-Sudani recently told lawmakers that the KRG would not receive the full funds needed to pay its civil servant salaries, citing insufficient resources within the Kurdish share of the federal budget.

The dispute stems from Article 12 of Iraq’s federal budget law, passed in June 2023, which requires the KRG to transfer non-oil revenues to Baghdad in exchange for its 12.6 percent share of the national budget. The KRG claims it already pays half of its local income to the federal government.

The financial impasse has placed further strain on relations between Erbil and Baghdad, with civil servants in the Kurdistan Region bearing the brunt of the ongoing crisis.