FSC rejects challenge to funding for Kurdistan Region

Shafaq News / The Federal Supreme Court has rejected the issuance of a provincial order suspending the decision of the Iraqi Council of Ministers to allocate 700 billion dinars to the Kurdistan Region to finance the salaries of employees and workers in the public sector there," said Amanj Rahim, Secretary of the Kurdistan Regional Government Council of Ministers, in a written statement distributed to local Kurdish media.

A high-level delegation from the Kurdistan Regional Government, led by Masrour Barzani, visited the capital, Baghdad, last week and held a series of meetings and discussions with the three presidencies, leaders, and representatives of political blocs with the aim of resolving the issue of funding the monthly salaries of the region's employees and securing the Kurdistan Region's share of the federal budget. An understanding was reached and later announced by the Council of Ministers.

During a session held on Sunday, September 17th, the Council of Ministers decided to amend its previous decision numbered (23500) for the year 2023 as follows:

1. Rafidain, Rashid, and TBI banks are responsible for lending the Kurdistan Regional Government a total amount of two trillion and one hundred billion dinars for the current fiscal year, to be paid in three equal installments of 700 billion dinars each, starting from September.

2. The Federal Ministry of Finance will settle the mentioned loan amounts from the Kurdistan Region's allocations in the federal general budget for the fiscal year 2023, after adjusting any outstanding debts.

3. In case the remaining amount from the region's share is insufficient to settle the loan amounts in accordance with paragraph (2) above, the Federal Ministry of Finance will settle the mentioned loan amounts from the Kurdistan Region's allocations in the federal budget for the fiscal year 2024 or from any other dues to the banks mentioned before any payments are made to the region.

4. The Federal Financial Control Bureau, in coordination with the Financial Control Bureau in the region, will audit the numbers of employees and those covered by social care and retirees in the region according to the lists submitted to the Federal Ministry of Finance and the amount of their salaries within a period not exceeding (30) days from the date of issuance of this decision, in accordance with the requirements set by both mentioned bureaus.