The Kurdistan Regional Government (KRG) responded to Adnan Faihan al-Dulaimi, First Deputy Speaker of the Iraqi Parliament, regarding employee salaries on Tuesday, rejecting his call to halt federal budget transfers and affirming that Erbil has fully met its constitutional and legal revenue obligations.

Al-Dulaimi accused the federal government of violating budget laws by transferring multiple months of salary funds to Erbil in 2025 despite the Kurdistan Region failing to deliver its legally mandated non-oil revenues.

He said that while agreements required 120 billion dinars monthly, the KRG only remitted 40 to 50 billion dinars, warning that continuing transfers without a full financial settlement exposes federal authorities to legal accountability.

His statement comes even though both the KRG and the federal government had agreed to a reduced revenue-sharing target because the Region's internal revenue collections declined due to regional conflict.

KRG Confirms Full Compliance With Federal Budget Laws 

“We confirm that the Kurdistan Region has fulfilled all its obligations stipulated under Financial Management Law No. (6) of 2019 and Federal General Budget Law No. (13) for the years 2023, 2024, and 2025,” the Ministry of Finance and Economy emphasized today.

The ministry reiterated its full compliance with the 2025 federal treasury transfer agreements while highlighting a shortfall in employee salary funding. Despite this commitment, payroll funding was only provided for ten months, excluding November and December, unlike other Iraqi institutions.

KRG Cites War and ASYCUDA Friction for Revenue Drop 

In accordance with "standard procedures and the agreement", the Kurdistan Region successfully transferred its required non-oil revenue shares to the federal treasury for the first five months of 2026. 

However, the Region witnessed a sharp revenue decline during March and April due to ongoing conflict and a failure to implement the automated ASYCUDA customs system at local border crossings, a delay the KRG says was "used as a means to impose an economic blockade" on the Region. 

To offset this fiscal strain, a temporary agreement was finalized with the previous federal government allowing the KRG to remit a reduced 50 percent ratio of its collected non-oil revenues.

Kurdistan Finance Ministry Slams Discriminatory Budget Clauses 

The KRG Ministry of Finance and Economy stated that rather than demanding funding halts, Al-Dulaimi should seek constitutional solutions to the arbitrary "actual spending" budget clause, which has been enforced exclusively against the Kurdistan Region to prevent the full transfer of its public payroll entitlements. 

Farhad Atrushi: Kurdistan Public Sector Salaries a ‘Red Line’

Earlier, Farhad Atrushi, the Second Deputy Speaker of the Iraqi Parliament, stated that the financial entitlements of the Kurdistan Region’s employees are a “red line” and should not be used as “a card for political clearing and pressure.” 

He asserted that linking public sector livelihoods to fiscal disagreements violates federal court rulings, while affirming that the KRG remains compliant with federal auditing protocols and constitutional revenue frameworks.