A high-level Kurdistan Regional Government (KRG) delegation, headed by Finance and Economy Minister Awat Janab, is scheduled to visit Baghdad this week to discuss the ongoing dispute over non-oil revenues and the deductions imposed on the Kurdistan Region's salary allocations.

The delegation is expected to hold meetings with Iraqi Prime Minister and Iraqi Finance Minister as both sides seek a solution to the financial disagreements that have affected salary payments in the Kurdistan Region.

According to sources within the KRG Council of Ministers, the delegation will present proposals aimed at reducing Baghdad's monthly deduction of 120 billion Iraqi dinars from the Region's salary allocations. The KRG is seeking to lower the amount to between 50 and 60 billion dinars or alternatively adopt the financial trial balance report as the basis for calculating non-oil revenue transfers.

High-Level Delegation

The KRG delegation includes Finance and Economy Minister Awat Janab, Diwan President Omed Sabah, Council of Ministers Secretary Amanj Rahim, Head of the Coordination and Follow-up Department Abdulkarim Khisro, as well as several government advisers.

Officials say the visit is intended to address the issue of non-oil revenues and establish a transparent mechanism for determining the Region's financial obligations to the federal government.

Trial Balance as Alternative

According to a source within the Council of Ministers, the Kurdistan Region is currently capable of transferring between 50 and 60 billion dinars in monthly non-oil revenues to Baghdad.

The delegation is expected to present two options to federal officials: reducing the monthly deduction from 120 billion dinars to 60 billion dinars, or relying on the trial balance report, which provides a detailed account of revenues and expenditures and is subject to auditing by the Federal Board of Supreme Audit.

Officials say the trial balance would provide a transparent financial framework acceptable to both sides.

Revenue Decline Puts Pressure on KRG Finances

KRG officials say the Region's non-oil revenues have declined by approximately 60 percent compared with previous years, significantly reducing its ability to meet the commitments outlined in earlier agreements with Baghdad.

According to officials, the Kurdistan Region generated approximately 320 billion dinars in non-oil revenues last year, while current revenues have fallen to less than 100 billion dinars.

The decline, officials argue, makes it impossible for the Region to continue transferring 120 billion dinars each month while maintaining regular salary payments.

Salary Delays and Previous Agreement

The current dispute stems from an agreement reached in July last year that required the KRG to transfer 120 billion dinars in monthly non-oil revenues to the federal government.

KRG officials say the continued deductions have contributed to delays in salary payments, particularly for the month of May, and have created additional pressure on the Region's finances.

Regarding June salaries, sources within the Council of Ministers expressed optimism that Baghdad would release salary funding this week. However, they stressed that the KRG remains opposed to deducting the full 120 billion dinars from the Region's allocations.

According to the sources, the KRG has conveyed its position to the Iraqi Ministry of Finance, while Iraqi Finance Minister Taif Sami has reportedly referred the matter to Prime Minister Mohammed Shia al-Sudani for a final decision.

The upcoming meetings in Baghdad are expected to determine whether both sides can reach a new financial arrangement that would ensure salary payments while addressing the longstanding dispute over non-oil revenues.