Peregraf

The Political Bureau of the Kurdistan Democratic Party (KDP) issued a strong warning to the federal government of Iraq, declaring that it will take a "serious position" if the financial entitlements of the Kurdistan Region are not disbursed before the upcoming Eid al-Adha holiday.

In a sharply worded statement, the KDP accused Baghdad of continuing to violate the constitutional rights of the Kurdistani people. "We warn the Iraqi and Kurdistan public opinion that the federal government continues to violate the constitutional rights of the Kurdistan Region," the statement read. "The latest violation is yesterday's letter from the Ministry of Finance, which contradicts the constitution and the principles of the government formation agreement."

The KDP further condemned what it called the "politicization of people’s livelihoods," referencing the delays in transferring the Region’s budget shares. The statement confirmed that the issue will be at the center of discussions during the party's upcoming Central Committee meeting on June 2, 2025.

"If the rights and financial entitlements of the people of the Kurdistan Region are not sent before the holy Eid al-Adha, we will take a serious position," the Political Bureau emphasized.

The latest development adds further strain to the already tense relationship between Erbil and Baghdad, particularly over budget disputes and revenue-sharing agreements. The KDP’s threat could signal potential political or administrative responses, depending on how the federal government reacts in the coming days.

Iraq Halts Kurdish Salaries Amid Dispute Over U.S. Oil Deals

As public sector workers in the Kurdistan Region anxiously awaited the arrival of their May salaries, a wave of frustration and despair swept through the region following an unexpected announcement from Baghdad: not only will the salaries for May not be transferred, but the salaries for the remaining eight months of 2025 are also in danger.

The Iraqi Minister of Finance, Taif Sami, has formally notified the Kurdistan Regional Government (KRG) that the 12.67% share of the federal budget allocated to the region has been fully spent. In her letter, Sami explained that based on the oil and non-oil revenues collected from the Kurdistan Region for the years 2023, 2024, and 2025 — along with the amounts sent monthly to pay salaries — the KRG has already received more than the funds legally allocated under the federal budget.

According to Sami, "The Kurdistan Region has exceeded its allocated share of 13 trillion and 547 billion Iraqi dinars. Continuing any further transfers would violate the federal budget law and the decisions of the Federal Supreme Court." She further criticized the KRG for failing to implement the salary banking system known as Tawtin, a long-standing demand from Baghdad.

This decision has sparked outrage among Kurdish officials, who accuse the federal government of using financial tools as political leverage. The timing of the letter has raised particular concern, coming just ten days after the KRG signed a historic $110 billion oil and gas deal with U.S. companies. Many Kurdish officials see Baghdad's move as retaliatory.

"This letter is not about accounting or legal rules," said Dr. Narmin Ma’roof, a Kurdish member of the Iraqi Parliament’s Finance Committee, after visiting the Ministry of Finance. "It is a clear political message, not a legal calculation. The way Baghdad has calculated the region's share has no legal or accounting basis, and it contradicts the Federal Supreme Court’s Decision No. 224."

Former Deputy Minister of Finance Rebaz Hamlan also condemned the move. "This is not an administrative or financial issue — it is part of Baghdad’s political pressure campaign against the KRG," Hamlan said. "Despite court decisions, Baghdad has never fully paid the KRG’s budget share. For 2025, 11.5 trillion dinars were allocated to the region for salaries, yet only 3.8 trillion have been disbursed."

Hamlan warned that this approach harms not only the KRG but also 1.25 million public employees and pensioners in the region who depend on monthly income. "What’s happening is an attack on the people of Kurdistan. Baghdad must stop using salaries as a weapon."

Soran Omar, a member of Iraq’s Parliament, echoed these concerns. "Last year, a similar issue happened in October. This year, it has happened as early as May, which shows a dangerous acceleration in the dispute," he told Peregraf. "Eight months of unpaid salaries would be a humanitarian disaster for the region."

The crisis comes at a time of heightened political and economic tensions between Erbil and Baghdad. On May 18, the KRG signed two massive energy deals in Washington with U.S.-based HKN/Onex Group (under Miran Energy) and Western Zagros. The contracts, signed under the supervision of KRG Prime Minister Masrour Barzani, bypass the Iraqi federal government and focus on developing the Miran and Topkhana oil and gas fields.