The Kurdistan Regional Government's Ministry of Finance and Economy has stated that the Iraqi federal government withheld more than IQD 48 trillion from the Kurdistan Region's budget entitlements between 2019 and 2025, sending only funds allocated for public sector salaries.

The figures were published in the ministry's latest performance and activities report, which details the Region's financial relations with Baghdad over the past seven years.

Region's Budget Share Exceeded IQD 79 Trillion

According to the report, the Kurdistan Region's total share of the Iraqi federal budget during the 2019–2025 period amounted to more than IQD 79 trillion after the deduction of sovereign and federal expenditures.

However, the ministry said the federal government transferred only approximately IQD 33 trillion to the Region during the same period.

The transferred funds were used exclusively to finance the salaries of public sector employees in the Kurdistan Region.

More Than IQD 48 Trillion Withheld

Based on the ministry's calculations, Baghdad transferred only 42 percent of the Kurdistan Region's legally allocated budget share.

As a result, more than IQD 48 trillion of the Region's financial entitlements was withheld over the seven-year period, according to the report.

The ministry said the shortfall placed significant financial pressure on the Kurdistan Region's institutions and public finances.

Investment and Operational Spending Affected

The report also states that the federal government did not provide allocations for operational or investment expenditures in the Kurdistan Region during the period under review.

According to the ministry, all federal transfers received between 2019 and 2025 were dedicated solely to public sector salaries, while funding for infrastructure projects, public services, and development programs was not provided.

Officials say the lack of operational and investment funding has affected the implementation of service projects and limited the Region's ability to carry out development initiatives.

The figures come amid ongoing discussions between Erbil and Baghdad over budget implementation, revenue sharing, and the financing of public sector salaries in the Kurdistan Region.