The Ministry of Finance and Economy of the Kurdistan Regional Government (KRG) transferred more than IQD 453 billion in non-oil revenues to the Iraqi federal government during the first five months of 2026, according to official figures.

The total amount transferred between January and May reached IQD 453.386 billion as part of the financial agreement between the Kurdistan Regional Government and the federal government in Baghdad. Under the agreement, the Kurdistan Region is required to remit IQD 120 billion per month from its domestic non-oil revenues to the Iraqi Ministry of Finance.

Monthly Revenue Transfers

Official statistics indicate that the amount transferred to Baghdad fluctuated considerably during the five-month period.

The Kurdistan Region transferred the full IQD 120 billion in both January and February. However, the amount declined significantly in March, when only IQD 43.094 billion was transferred. In April, the figure increased slightly to IQD 50.292 billion before returning to the agreed monthly amount of IQD 120 billion in May.

Officials attribute these fluctuations to seasonal declines in local revenues and broader economic conditions affecting the region.

The monthly transfers were as follows:

• January: IQD 120,000,000,000
• February: IQD 120,000,000,000
• March: IQD 43,094,141,000
• April: IQD 50,292,213,000
• May: IQD 120,000,000,000

Total: IQD 453,386,354,000

Federal Government Tightens Revenue Collection Policy

The Iraqi Ministry of Finance has reportedly adopted a stricter approach toward the implementation of the revenue-sharing agreement under the current federal cabinet.

Unlike the previous administration, which was more flexible regarding temporary shortfalls in monthly transfers, Iraqi Finance Minister Faleh al-Sari has emphasized the need for the Kurdistan Region to fulfill its monthly obligations in full.

According to officials, the ministry has warned that any deficit in the agreed monthly transfers may be deducted directly from federal allocations designated for the salaries of public sector employees in the Kurdistan Region.

Impact on Salary Funding

The policy was reportedly applied during the funding of May salaries, when the Iraqi Ministry of Finance deducted approximately IQD 70 billion from the Region's salary allocations to compensate for previous shortfalls in revenue transfers.

The deductions have added financial pressure on the Kurdistan Regional Government, which has faced challenges in meeting payroll obligations amid declining local revenues and ongoing economic difficulties.

Analysts say the issue underscores the continuing financial tensions between Erbil and Baghdad, particularly regarding revenue-sharing mechanisms and the implementation of budget agreements between the two governments.