ERBIL, Kurdistan Region - Kurdistan Regional Government's (KRG) finance ministry on Monday announced that it has transferred over 85 billion dinars ($65 million) from domestic revenues to the federal government.
The ministry announced in a statement that the sum is “from the domestic revenues of the Kurdistan Region for February 2024 was deposited in cash into the bank account of the Federal Ministry of Finance of Iraq at the Central Bank of Iraq's Erbil branch.”
“This amount represents 50 percent of the customs and tariff revenues of the Kurdistan Region for the month of February, based on monthly audit reports,” it added.
The transfer of the funds comes in line with a February ruling of Iraq’s Supreme Federal Court, which stated that the KRG must hand over all the oil and non-oil revenues to Baghdad.
Earlier this month, Erbil and Baghdad reached a preliminary agreement on the handover of revenues, whereby in the first phase, 50 percent of the Region’s non-oil revenue will be transferred in cash to the Federal Ministry of Finance's account at the Central Bank.
According to the federal budget law, the Kurdistan Region and Iraqi provinces must handover all non-oil revenues as well as half of border crossings’ revenues to the federal government.
This is the first time since 2003 that the Kurdistan Region's revenue has been handed over to Baghdad in cash. Previously, the amount was deducted from Baghdad's funds to the Region.
The KRG in February stated its readiness to hand over its non-oil income to the Iraqi government in a bid to abide by the federal budget law and prevent obstacles regarding the flow of money from Baghdad.
Erbil has repeatedly accused Baghdad of not making regular payments of its share of federal funds. Last June, Iraq passed a three-year budget of which the Kurdistan Region's share is 12.6 percent. Baghdad has claimed it has fully implemented its financial obligations to the KRG, including through loans to assist the Region to cover its payroll.
The ministry announced in a statement that the sum is “from the domestic revenues of the Kurdistan Region for February 2024 was deposited in cash into the bank account of the Federal Ministry of Finance of Iraq at the Central Bank of Iraq's Erbil branch.”
“This amount represents 50 percent of the customs and tariff revenues of the Kurdistan Region for the month of February, based on monthly audit reports,” it added.
The transfer of the funds comes in line with a February ruling of Iraq’s Supreme Federal Court, which stated that the KRG must hand over all the oil and non-oil revenues to Baghdad.
Earlier this month, Erbil and Baghdad reached a preliminary agreement on the handover of revenues, whereby in the first phase, 50 percent of the Region’s non-oil revenue will be transferred in cash to the Federal Ministry of Finance's account at the Central Bank.
According to the federal budget law, the Kurdistan Region and Iraqi provinces must handover all non-oil revenues as well as half of border crossings’ revenues to the federal government.
This is the first time since 2003 that the Kurdistan Region's revenue has been handed over to Baghdad in cash. Previously, the amount was deducted from Baghdad's funds to the Region.
The KRG in February stated its readiness to hand over its non-oil income to the Iraqi government in a bid to abide by the federal budget law and prevent obstacles regarding the flow of money from Baghdad.
Erbil has repeatedly accused Baghdad of not making regular payments of its share of federal funds. Last June, Iraq passed a three-year budget of which the Kurdistan Region's share is 12.6 percent. Baghdad has claimed it has fully implemented its financial obligations to the KRG, including through loans to assist the Region to cover its payroll.
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