KRG: Baghdad paid only 41% of dues
Shafaq News– Erbil
Baghdad paid only 41% of Kurdistan’s 3-year financial entitlements, the Kurdistan Regional Government (KRG) said on Tuesday, warning the shortfall has imposed an “investment blockade” and severe fiscal strain.
In a statement, the KRG’s Department of Media and Information said that under Iraq’s federal budget law approved on June 21, 2023 —covering 2023 to 2025— the Region’s share was determined through understandings between Erbil and Baghdad. However, it said the funds actually transferred fell far short of those allocations.
لە سێ ساڵی ڕابردوودا حکوومەتی فیدراڵی، 41%ی شایستە داراییەکانی حکومەتی هەرێمی خەرج کردووەhttps://t.co/LtWc0V7nMt pic.twitter.com/NXBXfnipIw
— KRG Dept. of Media & Information (@DMI_KRG) January 6, 2026
According to figures cited in the statement, Kurdistan was allocated a total of 58.3 trillion Iraqi dinars ($44.8 billion) over the three-year period, but received only 24.3 trillion dinars ($18.7 billion), equivalent to 41% of its dues and just 3.9% of overall federal budget spending.
The KRG said that despite the federal government allocating 165 trillion dinars ($126.9 billion) for investment spending nationwide, the Region received none of those funds, leading to stalled infrastructure projects.
On oil, KRG said the suspension of Kurdistan’s oil exports in March 2023 resulted in losses of about $25 billion to Iraq’s economy. After exports resumed in late 2025, the KRG said it exported 19.5 million barrels through Iraq’s state oil marketer SOMO, yet obstacles to the transfer of public sector salaries persisted.
Read more: Pipe dream or partnership? Iraq’s oil restart tests a fragile federal compact
The statement added that federal authorities failed to fully pay salaries in the Region throughout 2023, 2024 and 2025, causing months of accumulated arrears. The last salary payment transferred by Baghdad covered October 2025 and was deposited on Dec. 28, 2025, amounting to 942.8 billion dinars ($725 million).
The KRG said it had met its own financial obligations, including transferring 919 billion dinars ($707 million) in non-oil revenues to the federal treasury in 2025.
Baghdad has not publicly responded to the KRG’s claims.
Under agreements between Erbil and Baghdad, KRG is required to hand over oil and non-oil revenues to the federal government, while Baghdad is obligated to provide the Region’s financial entitlements, particularly salaries.
Read more: Into 2026, Baghdad and Erbil face the same disputes—with higher stakes
