Baghdad to send 200bn IQD transfer to Erbil: KRG official

Flags of Iraq and the Kurdistan Region (File)

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SULAIMANI — Kurdistan Regional Government (KRG) Representative in Baghdad Faris Isa said on Saturday night (August 14) that the federal Council of Ministers has decided to send 200 billion Iraqi dinar ($137 million) to the Kurdistan Region for this month.

Under an agreement with Prime Minister Mustafa al-Kadhimi, the KRG began to receive a monthly stipend of 200 billion dinars per month in July.

The agreement, however, does not resolve major budget disagreements between Erbil and Baghdad, which have prevented the implementation of the 2021 Federal Budget Law. KRG officials are keen to note that the stipend is not the Region’s budget share.

Isa told NRT that the federal Ministry of Finance, relevant offices, and the KRG representation in Baghdad have been informed of the transfer.

He said that the money is expected to be transferred to the Region on August 25, adding that the transfer will continue until the end of this year and is guaranteed.

During 2020, the KRG struggled to pay its employees, missing five monthly disbursements entirely and cutting four others by nearly a quarter. Government employees had their pay cut by twenty-one percent during the first six months this year.

Workers were paid in full in July for the first time in more than a year. It is unclear whether public servants will receive a full salary in August or beyond.

The salary cuts have had a significant effect on the economy of the Kurdistan Region because of the KRG’s role as the Region’s most important employer.

(NRT Digital Media)