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KRG calls on federal government to send budget transfer soon so it can pay public sector salaries

Baghdad says it will pay its government workers first
The Kurdistan Regional Government’s (KRG) Council of Ministers meets on September 30, 2020. (Photo Credit: Kurdistan Regional Government)
2020-09-30

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SULAIMANI — The Kurdistan Regional Government’s (KRG) Council of Ministers on Wednesday (September 30) called on the federal government to transfer an expected 320 billion Iraqi dinars ($269 million) in funding as soon as possible so that it can pay public servants in the Kurdistan Region.

The Council also approved a decision by the Finance and Economy Ministry to disburse public salaries with an eighteen percent cut, according to a press release from the KRG.

Public sector workers in the Region have not been paid since mid-August.

In April, Baghdad cut off all budget transfers to Erbil in retaliation for its failure to send the federal government any of the oil it was required to under the 2019 federal budget law, causing a severe disruption in the Region’s finances.

Funding totaling 320 billion Iraqi dinars per month was restored in a deal between the two governments last month, but it is a temporary agreement contingent on Erbil fulfilling a promise to bring customs procedures at international borders under federal control.

The federal government has said that it will make the budget transfer once it pays its own public servants.

During the weekly meeting, KRG Minister of State Khaliad Shwani and Minister of Interior Rebar Ahmad briefed ministers about the state of negotiations with Baghdad and the disputed areas said that face-to-face meetings would happen soon.

Turning to other issues, the cabinet condemned attacks on foreign embassies and military installations in Iraq and urged residents to adhere to public health guidelines because of the continued coronavirus outbreak.

(NRT Digital Media)