Iraq’s Council of Ministers will decide whether the Kurdistan Regional Government (KRG) must transfer the full 120 billion Iraqi dinars in monthly non-oil revenues to Baghdad. The decision could allow June salary payments for public employees across the Kurdistan Region.
A source familiar with the talks said the Iraqi cabinet will discuss the issue during its meeting. Ministers will decide whether to keep the payment at 120 billion dinars or reduce it because of lower regional revenues.
After the cabinet makes its decision, Iraq’s Ministry of Finance plans to transfer funds for June salaries.
The issue followed last week’s meeting between a KRG delegation and Iraqi Finance Minister Falih al-Sari. During the talks, Kurdish officials said the region could no longer afford the agreed payment because non-oil revenues had dropped sharply.
Officials said the Kurdistan Region previously collected about 320 billion dinars in monthly non-oil revenues. They now estimate monthly revenues at around 85 billion dinars. They argued that the current agreement no longer matches the region’s financial situation.
Minister al-Sari told the delegation that he could not change the payment amount himself. He said only Iraq’s Council of Ministers can approve such a change.
Al-Sari also assured Kurdish officials that the federal government would continue salary payments. He said Baghdad would transfer the funds every month, either in full or after any necessary financial adjustments.
Officials expect employees to receive their June salaries later this week after the cabinet announces its decision.
Baghdad and Erbil continue negotiations over the federal budget, revenue sharing, and financial commitments. Both sides aim to maintain regular salary payments while addressing the Kurdistan Region’s declining non-oil revenues.
The cabinet’s decision could strengthen financial cooperation between Baghdad and Erbil. It could also shape future negotiations on revenue-sharing and budget implementation.
