The First Deputy Speaker of the Iraqi Parliament, Adnan Faihan al-Dulaimi, has called on the federal government to immediately halt all financial transfers to the Kurdistan Regional Government (KRG).

In an official statement issued on June 8, 2026, Faihan warned that federal funding must be suspended until a comprehensive settlement is reached regarding outstanding revenues owed by Erbil, cautioning the executive branch that failure to do so could trigger strict parliamentary oversight and legal accountability.

Institutional Framework and Alleged Budget Violations

Faihan stressed that any continued allocation of federal funds must strictly comply with the Federal Budget Law and the joint audit reports compiled by the Federal Board of Supreme Audit and the Kurdistan Region's Audit Bureau. The Deputy Speaker explicitly criticized the previous administration’s handling of the files, alleging direct violations of Federal Budget Law No. 13.

According to Faihan, the previous government transferred five months' worth of public sector salaries to the KRG during 2025 without receiving the region's legally mandated share of non-oil revenues. He further accused federal authorities of twice overstepping their legal jurisdiction by unilaterally lowering the revenue figures specified in the joint audit reports. Faihan stated that these unsanctioned financial transfers have persisted into 2026 without the execution of legally binding offsets or financial settlements.

Timeline of Failed Financial Agreements

The statement outlined a series of structural breakdowns in revenue-sharing negotiations between Baghdad and Erbil over the past fiscal cycles:

• The 2023 Budget Law Mandate: Under Article 13 of Federal Budget Law No. 13 of 2023, and subsequent 2025 bilateral frameworks, the KRG was obligated to remit 391 billion Iraqi Dinars (IQD) monthly in non-oil revenues to the federal treasury. This figure was verified by the 2025 mid-year joint report of the federal and regional audit boards.
• The Six-Member Ministerial Compromise: A joint ministerial committee later agreed to reduce Erbil's monthly non-oil revenue obligation to 200 billion IQD. Faihan noted that despite Baghdad honoring its commitments to fund KRG public sector salaries for the first five months of 2025, Erbil failed to deliver the adjusted amounts.
• The Late-2025 Restructuring: By the end of 2025, a new arrangement was brokered, lowering the KRG's required monthly payment to 120 billion IQD, subject to a 10% annual increase. Consequently, the KRG's target monthly non-oil revenue remittance for 2026 was set at approximately 132 billion IQD.

Present-Year Deficits and Parliamentary Oversight

Detailing the current financial status of 2026, Faihan stated that while Baghdad has consistently fulfilled its salary obligations to regional employees over the past five months, Erbil's reciprocal non-oil revenue transfers have only fluctuated between 40 billion and 50 billion IQD monthly. He characterized this deficit as a massive deviation from both the active agreements and official regulatory oversight findings.

Faihan concluded his directive by stating that strict adherence to the Federal Budget Law and the official findings of the respective state audit boards remains the only legal mechanism to govern the financial relationship between Baghdad and Erbil. He asserted that upholding these statutes is essential to protecting public funds and safeguarding the constitutional rights of all Iraqi citizens.