Politics

KRG rejects amendments to the draft budget law: violates Erbil-Baghdad agreement

“The amendments introduced by certain members of the Finance Committee of the Iraqi Parliament on May 25 are against the interests of the Kurdistan Region.”

Wladimir van Wilgenburg 2023/05/27 13:26

The logo of Kurdistan Regional Government (Photo: Kurdistan 24)

Kurdistan Krg PM Masrour Barzani budget bill Iraq Erbil-Baghdad deal

ERBIL (Kurdistan 24) – The Kurdistan Regional Government (KRG) on Friday released a statement strongly opposing recent amendments to the budget bill currently under consideration by the Iraqi Parliament.

“The amendments introduced by certain members of the Finance Committee in the Iraqi Parliament on May 25 are against the interests of the Kurdistan Region,” the statement read.

These amendments violate the constitution and undermine the agreement between the KRG and the Iraqi Federal Government, the statement added.

Moreover, on Wednesday, Prime Minister Masrour Barzani in the weekly Council of Ministers meeting addressed attempts to change certain provisions of the budget law.

“Discussions focussed on sections of the bill concerning the financial entitlements of the Kurdistan Region. The Ministers deliberated on attempts to change certain articles of the budget, particularly Article 12,” the KRG said in a press release.

“During the meeting, the council acknowledged the efforts of certain members of the Finance Committee in the Iraqi House of Representatives to amend articles 13 and 14.”

“These proposed amendments, if passed, would infringe on the rights and entitlements of the Kurdistan Region. It should be noted that these rights had previously been agreed to and approved by both the Council of Ministers of the KRG and the Iraqi Federal Government on April 4, 2023.”

The Prime Minister called for the prompt approval of the budget law as agreed upon and urged the federal government to respect the financial entitlements of the Kurdistan Region.

He emphasized the importance of avoiding any changes or amendments to the draft budget law as mutually agreed to between Erbil and Baghdad.

Moreover, the Prime Minister Barzani reiterated that the KRG had fulfilled all its obligations, and therefore, the federal government must now fulfill its duty to provide the financial entitlement of the Kurdistan Region, like it does for the rest of Iraq.

An amendment to Article 13, paragraph 2, point C, restricts the Iraqi Ministry of Finance sending the financial entitlements of the Kurdistan Region on a number of conditions, including the delivery of 400,000 barrels of oil per day and non-oil revenues earned.

Another amendment added five additional conditions to Article 14. Point 8, for example, requires a 15-day timeframe to resolve disputes between the Kurdistan Region and Baghdad. If unresolved, the Kurdistan Region's financial entitlements will be suspended. Furthermore, Point 9 ensures equal salary payments among the provinces, and gives Baghdad the right to intervene if discrimination occurs.

Point 10 obliges the KRG to stop oil extraction from certain fields, limiting production to 200 barrels per day. The Iraqi government may suspend financial entitlements if the agreed-upon oil delivery is not met. Point 11 pertains to the Iraqi government participation in managing border crossings, while Point 12 requires the KRG to allocate at least 10% of its budget to settle employee salary arrears.