Erbil-Baghdad talks on KRG budget share continue without a foreseeable deal

8/20/2023 12:12:26 AM
The Kurdistan Regional Government (KRG) delegation will return to Baghdad today to receive a final answer on whether to send the entire share of the region or send a loan as in previous months, they still disagree on several points.

Three sources familiar with Erbil-Baghdad talks in Baghdad told KurdSat that the Kurdistan Regional Government (KRG) delegation will return to Baghdad today and a number of directors general of the Ministry of Finance and the Financial Supervision Bureau will accompany the delegation.

The delgation will discuss the report prepared by the Iraqi Financial Supervision Bureau on the audit of revenues and expenditures of the Kurdistan region, the sources explained.

The delegation wants to get a final say from Baghdad on whether it will spend the entire share of the region or an amount of money as a loan, as in the previous months. According to the sources, the Kurdistan region and Baghdad have not yet reached a conclusive agreement.

The Iraqi government has demanded the handover of 400,000 barrels of oil and non-oil revenues from the federal region, but the Kurdistan region has handed over only 55,000 barrels.

Baghdad also demands that all non-oil revenues be handed over and then 50% of the non-oil revenues will be sent back to the Kurdistan region.

The KRG delegation visited Baghdadi last week and held several meetings with the relevant federal government departments regarding the sending of the Kurdistan Region's share of the budget. However, it is not clear when the share will be sent.

The Kurdistan region depends almost entirely on its budget share to fund the region’s expenditures and paying its employees, however Baghdad has cut off the region’s budget share since 2014 and occasionally sends only a portion of the region's financial share and entitlements.

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