Kurdistan Region commits to transfer non-oil revenues to federal government

SULAIMANI, Kurdistan Region — The Kurdistan Regional Government (KRG) announced that it will deposit Baghdad’s share of the Kurdistan Region’s non-oil revenues into the Federal Finance Ministry’s bank account, in accordance with existing federal laws.

This initiative aims to proactively address potential hurdles in securing the Kurdistan Region’s fiscal rights from the Federal government.

Depositing Baghdad’s portion of the Kurdistan Regional Government’s non-oil revenues into the bank account of the Iraqi Finance Ministry is aligned with the Kurdistan Region’s obligation to fulfill economic commitments as mandated by the Federal Court.

In a statement following its meeting on Wednesday, the KRG emphasizes that no excuses should hinder the Federal government’s Finance Ministry from allocating the Kurdistan Region’s budget share and the payments of its civil servants.

The meeting also discussed the resumption of oil exports from the Kurdistan Region. The KRG is hopeful that this process will recommence soon and has committed to ensuring that the revenue returns to the Iraqi Finance Ministry’s bank account once the suspended issues between the two governments are resolved.

In the meeting, the disbursement of April salaries for civil servants in the Kurdistan Region and the KRG’s steadfast commitment to distributing salaries through the “My Account” project were also addressed.

Earlier this month, Iraq’s Finance Minister, Taif Sami, informed reporters that the Federal government would uphold the Federal Court ruling by continuing to disburse salaries to the Kurdistan Region, and Erbil is expected to transfer all oil and non-oil revenues to Baghdad.

The KRG and the federal government in Baghdad have been locked in a complex web of disputes for years. The core issue centers on the interpretation of Iraq’s 2005 constitution. The KRG believes it grants them significant autonomy over oil production and revenue sharing, while Baghdad argues for a more centralized control.

Recent developments have further strained relations. The Iraqi Federal Supreme Court’s rulings have been a point of contention. Erbil views these rulings, like the one demanding the KRG hand over control of oil exports, as an overreach of Baghdad’s authority. The KRG’s response, including the resignation of a Kurdish judge from the court, is seen by some as a calculated move to challenge the court’s legitimacy.

More Articles

Back to top button