At a Glance

• Baghdad sent an average of just 2.04% of the general budget to Erbil between 2014 and 2025.
• The federal government transferred only 41.04 trillion dinars out of an allocated 212.76 trillion dinars.
• Sent funds covered only 46 monthly salaries out of 144 total months required.

The Kurdistan Region's Ministry of Finance announced that Baghdad has sent an average of just 2.04% of Iraq’s general budget to Erbil over the past 12 years, falling drastically short of the region's legally designated shares.

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Key Statements and Focus Area

• The Ministry of Finance and Economy stated that, “Over the past 12 years, the federal government has sent nearly 41 trillion dinars to the Kurdistan Region, which covers 46 salaries out of a total of 144 salaries.”
• The ministry reaffirmed that “the Kurdistan Region's share amounts to 14.14% of Iraq's general budget.”

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According to a statement from the ministry’s Media Office, the federal government sent an actual average of only 2.04 percent of the Iraqi general budget to the Kurdistan Region between 2014 and 2025. This funding arrived after deductions for sovereign expenses, debts, and other obligations, falling significantly short of the 17 percent and 12.67 percent shares originally designated for the Kurdistan Region.

During this period, the Federal Ministry of Finance transferred only 41 trillion and 42 billion dinars out of a total allocated 212 trillion and 761 billion dinars to the Kurdistan Region's account. These funds were sufficient to cover approximately 46 monthly salaries for regional employees and beneficiaries out of the 144 total salaries required during that timeframe.

The ministry stated that due to the absence of a budget law in 2014, 2020, and 2022, the federal government treated the funds sent to the Kurdistan Region as loans. These amounts are scheduled for deduction from the region's financial share once the general budget receives official approval.

The government noted that this funding shortfall persists despite 2024 data from the Federal Ministry of Planning and recent population census results indicating that the Kurdistan Region is entitled to 14.14 percent of Iraq's general budget.

FYI

The 2027 draft budget bill has officially been returned to the Iraqi Ministry of Finance to undergo necessary modifications and revisions, delaying its passage amidst ongoing negotiations. 

In parallel, high-stakes negotiations are intensifying between the Kurdistan Regional Government and Baghdad. 

The KRG is pushing forward several critical financial and civil service demands, including absolute guarantees for the timely transfer of public sector salaries, the regularizing of contract teachers, and the lifting of recruitment freezes. 

Furthermore, Erbil is demanding that its budget allocation be fixed at 14.14% based on the latest general population census results, forcefully rejecting a federal attempt to cap the region's share at 12.7% or 12.68%. 

prominent KRG officials have voiced fierce, explicit criticisms against the current layout of the federal draft budget. Amanj Raheem, Secretary of the KRG Council of Ministers, openly challenged Article 10, Paragraph 1 of the draft, revealing that Baghdad unilaterally manipulated the region's census metrics to cut down the registered population by over 713,000 individuals. Raheem slammed this reduction as a direct violation of Article 121 of the Iraqi Constitution.

Additionally, speaking to Channel8 recently, Iraqi parliament Second Deputy speaker Farhad Atrushi has publicly warned that the draft contains highly detrimental clauses for the Region. 

Specifically, KRG critics demand that Baghdad completely eliminate the restrictive "actual expenditure" mechanism and halt the massive financial set-offs that deduct 120 billion IQD monthly from their designated funding pool.

Meanwhile, Baghdad demands a uniform transition of all public sector financial reporting to the strict federal "Program and Performance Budget" guidelines.

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