Iraq's Finance Ministry begins funding July salaries for KRI employees

Shafaq News / On Sunday, the Federal Ministry of Finance announced that it will start funding part of the July salaries for public sector employees in the Kurdistan Region (KRI).

Masoud Haider, Deputy Minister of Finance, announced that "the Ministry will disburse part of the July salaries for Kurdistan Regional Government (KRG) employees today, following the completion of most of the Federal Financial Control Bureau's work."

Previously, the KRI relied on independent funding from oil exports to partially cover salaries. However, a dispute with the federal government and Turkiye, through which the oil was exported, has blocked this income source since March 2023.

A preliminary agreement was later reached between KRI and Baghdad, allowing Kurdish oil sales to pass through the federal government in exchange for 12.6 percent of Iraq's public spending.

A court ruling also mandated the Kurdish administration to transfer all its oil and non-oil revenues to the federal government and submit to an audit.

With oil revenues halted, Kurdistan's primary revenue now comes from taxes collected at border crossings with neighboring countries, including Iran and Turkiye, Iraq's major regional trade partners.