The Kurdistan Regional Government's (KRG) Ministry of Finance and Economy revealed that its actual public expenditures exceeded 87.5 trillion Iraqi dinars between 2019 and 2025, with more than 74% of the budget consumed entirely by public sector salaries.

The ministry issued a report on Saturday stating that out of 87.5 trillion Iraqi dinars in total expenditure, more than 65 trillion dinars were allocated to public sector salaries, while over 14 trillion dinars covered operational costs for government directorates, ministries, and related entities. 

Additionally, more than 4 trillion dinars were directed toward electricity production, with approximately 4 trillion dinars allocated to capital investment projects.

Excluded Costs: Unpaid Salaries and Contractor Dues 

"This total excludes unpaid salaries during this period, pension deduction rates, employee promotions, and salary differentials," the ministry clarified.

Furthermore, this figure excludes outstanding dues owed to private companies and contractors, alongside electricity production costs, a portion of which was settled via checks and financial netting mechanisms driven by liquidity shortages in local banks.

KRG Highlights Reliance on Local Revenue 

 The KRG highlighted that all operational, capital investment, and electricity production costs are funded strictly through the Kurdistan Region's domestic revenue streams; since 2013, the Federal Ministry of Finance has only provided partial disbursements to subsidize monthly public sector salaries.