Iraq's Council of Ministers to Decide on Kurdistan Region's Non-Oil Revenue Contribution Ahead of Salary Transfers
Cabinet expected to rule on disputed 120 billion dinar payment as Finance Ministry prepares to release June salaries for Kurdistan public employees
ERBIL (Kurdistan24) — Iraq's Council of Ministers is expected to convene on Saturday evening to decide whether the Kurdistan Regional Government (KRG) must transfer the full 120 billion Iraqi dinars in non-oil revenues to Baghdad or whether the amount will be reduced, a decision that could pave the way for the release of June salaries for public employees in the Kurdistan Region.
A source familiar with the matter told Kurdistan24 that the Iraqi cabinet will discuss the disputed payment during its meeting on Saturday, July 4, before issuing a final decision.
According to the source, the Council of Ministers is expected to either approve the transfer of the full 120 billion dinars by the KRG or authorize a reduction in the required amount in light of the region's declining non-oil revenues.
The source added that once the cabinet reaches a decision, Iraq's Ministry of Finance will begin the process of transferring funding for the June salaries of public sector employees in the Kurdistan Region.
The anticipated decision follows discussions held last week between a KRG delegation and Iraqi Finance Minister Falih al-Sari. During the talks, the Kurdistan delegation informed Baghdad that the region's non-oil revenues had fallen sharply, making it impossible to transfer the previously agreed 120 billion dinars.
The Iraqi finance minister reportedly told the delegation that he did not have the authority to reduce the amount, explaining that such a decision falls exclusively within the jurisdiction of the Council of Ministers. That position prompted Saturday's cabinet meeting to resolve the issue.
According to the source, al-Sari also assured the KRG delegation that the salaries of Kurdistan Region public employees would not be delayed.
"I will never postpone the salaries of Kurdistan Region employees. Every month, I will transfer the salaries, either in full or after deductions," the minister was quoted as saying.
Officials expect the June salaries to be disbursed sometime this week following the cabinet's decision.
The dispute stems from an earlier financial understanding between Baghdad and Erbil under which the KRG agreed to transfer 120 billion dinars in monthly non-oil revenues to the federal government. At the time, the Kurdistan Region's monthly non-oil revenues stood at approximately 320 billion dinars.
However, KRG officials say those revenues have since declined dramatically to around 85 billion dinars, arguing that the previous payment commitment is no longer financially sustainable and should be revised to reflect current economic conditions.
The latest discussions come amid ongoing negotiations between the federal government and the Kurdistan Regional Government over budget implementation, revenue-sharing, and the regular payment of public sector salaries, issues that have repeatedly strained relations between Baghdad and Erbil in recent years.