Shafaq News/ On Thursday, the Iraqi Ministry of Finance announced the disbursement of salary funding for the Kurdistan Region for March, following directives from the Prime Minister and approval from Minister of Finance Taif Sami.
In a statement, the ministry detailed the allocations, which include "salaries for civilian employees, allowances for the disabled under social protection programs, pensions for civilian and military retirees, benefits for martyrs' families, orphans, and contract workers, and regional department allocations."
The ministry also "informed the Federal Supreme Court and the Federal Financial Supervisory Diwan about the salary disbursements, since the localization process for these payments necessitates additional time."
Furthermore, the Federal Ministry of Finance has underscored the need for the Kurdistan Regional Government to "take legal responsibility for the accuracy and completeness of the information and data provided to regulatory and legal entities."
The Kurdistan Regional Government (KRG) and the Iraqi federal government announced a breakthrough on Wednesday, reaching an agreement on a long-standing dispute regarding public sector salaries in the Kurdistan Region.
The agreement, according to a statement issued by Prime Minister Masrour Barzani, marks a significant step towards resolving a key source of tension between Erbil and Baghdad.
"We have arrived at a satisfactory solution for allocating salaries to employees and retirees in the Kurdistan Region," Barzani stated. "This achievement follows persistent efforts and extensive collaboration between our team and the team of the Prime Minister of the federal government."
"We are committed to disbursing March salaries before the Eid al-Fitr holiday," Barzani added. "This will occur alongside the disbursement of February salaries within the next two days."
Notably, the Kurdish government has faced significant challenges in meeting the timely and complete payment of salaries to its civil servants for the past decade. This financial strain intensified following a ruling by a Paris-based arbitration court that suspended the KRG's oil exports to international markets a year ago, exacerbating its financial crisis.
As a result, the KRG has been heavily reliant on local income sources and its allocated share from the federal budget, which has been a subject of controversy. Despite efforts to manage its fiscal situation, the KRG has consistently struggled to meet its salary obligations.
The Federal Supreme Court of Iraq's decision worsened the situation by issuing a ruling ordering the "localization" of salaries for all Kurdistan Region employees in federal banks. This decision has resulted in the halt of salary disbursements, leading to numerous strikes across various sectors.