Shafaq News- Erbil/ Baghdad

The Kurdistan Regional Government (KRG) said on Sunday it transferred 50.29 billion Iraqi dinars ($38.4 million) to Baghdad under a revenue-sharing mechanism tied to federal salary payments for public employees in the Kurdistan Region.

The payment comes amid ongoing negotiations between Erbil and Baghdad over salaries, budget allocations, and non-oil revenues, as Iraq’s political blocs continue talks over the formation of Prime Minister-designate Ali Al-Zaidi’s new government. Last month, a high-level Kurdish delegation visited Baghdad to discuss mechanisms for funding Kurdistan Region salaries for 2026 under the current financial framework.

Under a mechanism adopted by Iraq’s Council of Ministers on Aug. 26, 2025, federal salary transfers to the Kurdistan Region were linked to Erbil’s commitment to transfer 120 billion dinars per month in non-oil revenues to Baghdad, according to previous statements by the Iraqi Finance Ministry and the KRG.

Still, KRG spokesperson Peshawa Hawramani said in January that Baghdad had transferred only about 41% of the Region’s financial entitlements over the previous three years. The KRG also stated that Baghdad transferred 24.3 trillion dinars ($18.7 billion) to the Region between 2023 and 2025 out of allocations totaling 58.3 trillion dinars ($44.8 billion), while Kurdish officials continue to demand compensation for months of delayed salary payments and suspended budget transfers.

Read more: Into 2026, Baghdad and Erbil face the same disputes—with higher stakes