Shafaq News- Erbil
Kurdistan Region's Ministry of Finance and Economy on Tuesday criticized remarks by Adnan Fayhan al-Dulaimi, First Deputy Speaker of the Iraqi Council of Representatives, who had called on the federal government to halt financial transfers to the Region pending a full financial settlement.
In an official statement, the Ministry said the Kurdistan Regional Government (KRG) has consistently demonstrated readiness to address any financial observations or conduct any relevant settlement, and affirmed that the Region has fulfilled all obligations stipulated under Financial Administration Law No. 6 of 2019 and Federal General Budget Law No. 13 for the years 2023, 2024, and 2025.
The Ministry took direct aim at al-Dulaimi's framing, describing the call to suspend salaries for one category of citizens while exempting others as "surprising and astonishing," particularly coming from an official of his institutional rank. The statement said such a position stood in contrast to the responsibilities of the First Deputy Speaker, who, it argued, should be among the most committed to protecting the rights of all citizens and ensuring equality among them.
Al-Dulaimi, on Monday, urged the federal government to cease transferring any funds to the KRG until a full settlement is conducted in accordance with the Budget Law and the joint audit report prepared by the federal and regional financial oversight bodies. He cautioned that any action inconsistent with those conditions would expose the government to legal accountability.
Salaries Dilemma
The salary dispute between Baghdad and Erbil dates back to 2014, when Baghdad halted the transfer of the KRG's share of the federal budget, prompting the Region to begin exporting oil independently to cover public salaries and services. Tensions sharpened in March 2023, when Kurdistan's oil exports through Turkiye's Ceyhan port were suspended following an international arbitration ruling in favor of Baghdad, after which the federal government tied salary payments to the transfer of oil revenues, classifying funds sent to the Region as temporary advances rather than regular budget allocations.
Under Iraq's 2023–2025 federal budget law, Kurdistan was allocated a total of 58.3 trillion Iraqi dinars (approximately $44.8 billion) over the three-year period, but received only 24.3 trillion dinars, or roughly $18.7 billion, equivalent to 41% of its dues, according to KRG figures. The last salary payment transferred under that budget cycle covered October 2025 and was deposited on December 28, 2025, amounting to 942.8 billion dinars ($725 million.)
The shortfalls have continued into 2026. In February, the KRG's Ministry of Finance reported that more than 36 billion dinars ($27 million) had been deducted from January's salary funding without transfer to the Region, with some retirees receiving only a single payment despite entitlement to several months of pension. Most recently, on May 26, the KRG said Baghdad transferred approximately $674.6 million of the more than $735.4 million needed to cover May salaries and pensions, a gap of more than $60 million, despite the Region depositing roughly $38 million in non-oil revenues to the federal treasury before the month's end. The KRG said it would borrow funds to cover the shortfall and ensure salaries were distributed before Eid al-Adha.
Iraq's new Prime Minister Ali al-Zaidi personally informed KRG Prime Minister Masrour Barzani during talks in Baghdad on May 24 that he had instructed the federal Finance Ministry to release Kurdistan Region payroll funding regularly and without discrimination, framing equal salary treatment as a stated priority of the incoming government.