The Iraqi Ministry of Finance will dispatch funding for the June salaries of Kurdistan Region public sector employees within the coming week, according to Iraqi Member of Parliament Srwa Muhammad.

Speaking to Channel8, the lawmaker explained that the recent delay stems from a widespread domestic liquidity crunch in Baghdad that has stalled disbursements across federal presidencies, independent commissions, and general directorates.

Cash Shortages Delay June Payroll

The federal government's struggle to finalize national payrolls is tied directly to a temporary shortage of available cash reserves in Baghdad. However, Muhammad assured public sector workers that the delay is administrative rather than political, noting that federal ministries are systematically processing the funds.

Stability Through 2027: Under current federal policy, monthly salary transfers to the Kurdistan Region are legally guaranteed until the Iraqi Council of Representatives debates and passes the 2027 budget law. Both the federal prime minister and the finance minister remain committed to maintaining the scheduled monthly payroll pipeline.

The 120 Billion Dinar Non-Oil Revenue Dispute

While salary guarantees remain stable, financial negotiations between Erbil and Baghdad continue over the handling of the Kurdistan Region's non-oil revenues.

The ongoing financial balancing act involves a strict offsetting mechanism:

• The Federal Demand: Baghdad is currently offsetting a fixed sum of 120 billion Iraqi dinars from the region's monthly allocations, adhering strictly to the existing federal-regional agreement.
• The Regional Proposal: A visiting Kurdistan Region delegation formally requested to slash this deduction by half, proposing a reduced 60 billion dinar offset.
• The Status Quo: The proposal has been submitted to the Iraqi Minister of Finance, but federal authorities are holding firm to the original 120 billion dinar agreement. Adjustments will only occur if a formal amendment to the budget framework is ratified.