KRG Transparency Report Reveals Seven Years of Fiscal Reform

ERBIL (Kurdistan24) - In a significant and welcome step toward greater accountability, the Kurdistan Region Government published a comprehensive transparency report detailing its revenues, expenditures and financial relations with Baghdad from 2019 to 2025. Released on Thursday by the KRG Department of Media and Information, the document carries the credibility of independent verification by both the Federal Board of Supreme Audit of Iraq and the Kurdistan Region's Board of Supreme Audit.

This is not merely another set of statistics.

It is a clear and confident account of how the KRG steered the Kurdistan Region through one of the most difficult periods in its recent history, the COVID-19 pandemic, the collapse in global oil prices, the 2023 suspension of independent oil exports, and years of delayed or incomplete budget transfers from the central government. 

By placing these facts openly before the public, the KRG has demonstrated a genuine commitment to transparency and responsible stewardship.

The report answers important questions that citizens, civil servants and international partners have long asked: Where did the money come from? How was it spent? How were salaries protected? And what role did federal obligations play in the challenges the Region faced?

Over the seven-year period, the Kurdistan Region's statutory share of Iraq's federal budget stood at 146.4 trillion dinars.

Only 33.4 trillion dinars were actually transferred by Baghdad. Even after accounting for sovereign and defense deductions, substantial outstanding amounts remain unpaid.

The report makes clear that the Region did not receive its fair share of allocations linked to the Peshmerga forces, despite these deductions being applied to its budget entitlement.

Faced with these shortfalls, the KRG showed remarkable resilience by mobilizing and expanding its domestic revenue base.

Total revenue generated within the Kurdistan Region reached 51.4 trillion dinars. While oil sales contributed 22.6 trillion dinars up to March 2023, non-oil sources proved vital after exports were suspended.

Customs revenue delivered 9.5 trillion dinars, tax and state-property income added 5.4 trillion dinars, and revenue collected by ministries and public institutions contributed a further 13.8 trillion dinars. These domestic streams enabled the government to continue delivering essential services and supporting strategic projects without relying solely on federal transfers.

Total expenditure over the period amounted to 87.6 trillion dinars, with the clear priority given to protecting salaries and basic public services.

In 2025, for example, 10 trillion dinars went toward ten months of public-sector salaries within a total expenditure of 14.3 trillion dinars. Operating costs for healthcare, municipal services, road maintenance and other essential functions were maintained, while limited but important investment continued in priority infrastructure.

The scale of the public sector reflects the KRG's deep commitment to its people. With 1.19 million registered salary recipients and beneficiaries requiring approximately 946 billion dinars each month, the government has sustained one of the largest social safety nets in the region.

Despite ongoing financial pressures, 66,474 new permanent and contract positions were created during this period, all financed through domestic revenue. Contract teachers and employees continued to be paid from local sources, ensuring that vital services in education and administration did not collapse.

Salary payments remained the KRG's highest priority throughout the crises. Over seven years, only ten monthly salary payments went unpaid, with the responsibility for these clearly resting with the federal government's outstanding obligations.

Another eleven months saw temporary deductions. This record stands as clear evidence of the KRG's determination to protect its public servants and maintain social stability even when external support was unreliable.

The publication of this report itself marks a positive development in governance. By providing detailed, audited figures on every major revenue stream and expenditure category, the KRG has set a higher standard for transparency in the Kurdistan Region.

It allows citizens to see exactly how their government managed limited resources, how domestic revenues helped fill gaps left by Baghdad, and how services were kept running for ordinary people.

For investors and international partners, the report offers a transparent picture of both the challenges and the Region's capacity to adapt. It shows a government that prioritized its people, maintained core functions, and took concrete steps toward financial reform under the Ninth Cabinet.

The data ultimately tell a story of resilience.

While external pressures were significant, the KRG successfully leveraged its own revenues, protected salaries to the greatest extent possible, and continued delivering public services. The decision to publish this level of detail reflects confidence in the Region's institutions and a forward-looking approach to governance.

As the Kurdistan Region moves ahead, this landmark report provides a strong foundation.

Greater transparency can help build public trust, improve dialogue with Baghdad on outstanding financial issues, and demonstrate to the world that the KRG is serious about accountable and responsible administration.

It is a positive step that deserves recognition, one that strengthens the Region's position and reinforces its commitment to serving its citizens with integrity.