The preparation of the June salary list for Kurdistan Region public sector employees using the “Payroll” system has been completed. While preparations are underway to dispatch the list to Baghdad, financial officials are warning of a significant decline in non-oil revenues that could trigger an imminent deficit.

Completion of June Salary List via Payroll System

Yadgar Jabar, Supervisor of Biometrics in Sulaymaniyah, announced that the June salary list for public sector employees in Sulaymaniyah, Halabja, and the Raperin and Garmiyan administrations has been finalized using the payroll system.

The list has been officially approved by the Sulaymaniyah Directorates of Treasury and submitted to the Kurdistan Region Ministry of Finance and Economy for final processing.

Schedule for Submission to Baghdad

According to tracking updates, the June salary list, along with the May trial balance sheet, is expected to be sent to Baghdad at the end of this week after auditing by the Ministry of Finance.

Auditing of the submitted lists will begin this coming Sunday, with an administrative deadline set for Monday to complete all submissions.

Declining Non-Oil Revenues and Emerging Fiscal Risks

An official from the Ministry of Finance stated that non-oil revenues in the Kurdistan Region have dropped by more than 60%, leaving the government unable to transfer the required 120 billion Iraqi Dinars (IQD) in non-oil revenues to Baghdad each month.

The official warned that if Baghdad continues to deduct this 120 billion IQD monthly from salary allocations, the Regional Government will face severe financial deficits in June and in the months ahead.

Revenue Restructuring and Talks with the Federal Government

The Kurdistan Regional Government (KRG), during its Council of Ministers meeting, decided to restructure local revenue collection and reduce operational expenditures.

A financial delegation is scheduled to visit Baghdad to discuss the June non-oil revenue issue and negotiate a mechanism to reduce the monthly payroll deductions imposed by Baghdad.

Banking Sector Situation and Salary Priorities

An official from the Central Bank of the Kurdistan Region, Sulaymaniyah Branch, stated that the region’s financial situation remains highly unstable, noting that declining non-oil revenues have disrupted the financing of daily government operations.

The official added that the immediate priority for local banks is securing unpaid salaries, meaning all collected local revenues will be directed toward payroll coverage.