Budget Amendment Will Solve Erbil-Baghdad Issues

Economy 01:53 PM - 2024-01-07

Iraq and Kurdistan's flags.

An amendment to the Iraqi budget law is expected soon, with a focus on the Kurdistan Region provisions. According to the Iraqi Government's Minister of Justice, this amendment will effectively address the issues concerning the salaries and budget of the Kurdistan Region.

A delegation from the Kurdistan Regional Government (KRG) is currently in Baghdad to discuss various issues about the Kurdistan Region. The salaries and budget are the primary topics of these discussions.

Efforts to resolve the salary and budget problems continue

Following a meeting with the Iraqi presidency, Iraqi Justice Minister Khalid Shwani stated, "Resolving the issue of the budget and salaries of the Kurdistan Region's employees is a critical concern, and every possible effort is being made to address this issue."

"The KRG delegation, which is currently in Baghdad, has begun discussions with all relevant parties about amending the budget legislation." "We are optimistic about reaching a comprehensive budget and salary resolution within the budget law," he added.

The budget law will be amended soon

"The legislative recess is scheduled to conclude on January 9, 2024, at which point the sessions will resume," Karwan Yarwais, MP of the PUK faction in the Iraqi Parliament, told PUKMEDIA. The KRG and the Iraqi government, however, must reach an agreement on the draft law. The amendment will be presented to parliament once it has been approved by the Council of Ministers."

"The main points of contention in the budget law are the provisions of the Kurdistan Region." If the two governments reach an agreement on the proposed draught, the law can be amended quickly," Yarwais said.

Baghdad will continue to send loans

Dr. Narmin Maruf, a member of the Finance Committee of the Iraqi Parliament, told PUKMEDIA: "The salaries of employees in the Kurdistan Region should be separated from political disputes and other spending." To achieve this goal, the article on employee salaries in the Kurdistan Region must be revised within the budget." 

"Unless the budget law is changed, the Iraqi government will most likely continue to provide monthly loans of 700 billion dinars to the KRG," she added.

According to PUKMEDIA's research, the KRG delegation has formally requested 913 billion dinars from Baghdad. However, it is expected that the Iraqi government will continue to lend 700 billion dinars to the Kurdistan Region until the budget law is revised, as it has done in previous months.

During the fourth quarter of the previous year, the Iraqi government loaned the KRG 700 billion dollars to cover its employees' salaries. Nonetheless, the KRG continues to request an increase in the loan from Baghdad.



PUKMEDIA