Parliamentary questions on KRG budget submitted to EU foreign affairs committee

European Parliament must now provide an answer to the questions no later than Jan. 8, 2024.

Dastan Muwaffaq 2023/12/11 20:53

European Parliament logo (Photo: European Parliament)

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ERBIL (Kurdistan 24) - European Parliament on Thursday published parliamentary questions about intra-Iraqi budgetary disputes submitted on behalf of Kurdistan Region authorities.

Addressed to the Vice-President of the Union for Foreign Affairs and Security Policy, the two questions ask the senior official if they are aware that the “decisions of the Iraqi Federal Courts are being used as political leverage against the KRG [Kurdistan Regional Government],” and what steps, if any, would they take to “improve dialogue and cooperation between Baghdad and the KRG.”

The questions refer to an agreement signed in September by Iraq and the KRG regarding the Kurdish share of the budget. European Parliament must now provide an answer to the questions no later than Jan. 8, 2024.

The provisions of the agreement were incorporated into the country’s budget law for 2023 through 2025.

Previously on Sept. 14, a senior KRG delegation led by Prime Minister Masrour Barzani visited Baghdad to discuss the financial disputes, after which an agreement was reached regarding the autonomous Kurdish region’s salaries.

Afterwards, the Iraqi Council of Ministers decided to disburse 700 billion dinars ($534.1 million) monthly, albeit in the form of loans, until November in order for the Region to be able to cover public expenses, including civil servant salaries.

However, the KRG claims the loans do not constitute payment of their share of the Iraqi budget, and the financing is irrespective of its actual, apportioned budget share.

The major hurdle for the Kurds is that the KRG’s oil revenues from Turkey’s Ceyhan Port have been halted since March, creating devastating economic repercussions. This followed an adverse ruling by the Paris-based International Chamber of Commerce’s International Court of Arbitration, where Iraq scored a victory over Turkey and its import of Kurdish oil, with the court deeming the sales illegal.

That flow of income has yet to be restored, and the KRG has lost upward of about $7 billion in revenues, although that figure was last reported on Nov. 12.

Set at 12.67 percent, the Kurdistan Region accounts for approximately $12 billion annually of Iraq’s budget.

Kurdish leadership has frequently criticized Baghdad for what it perceives as strong centralization in the capital, despite Iraq constitutionally being a federal country, and that a lack of decentralization has contributed to rampant corruption of the funds destined for the Kurds.