2026-05-26T11:39:44+00:00
Shafaq News- Erbil
The Kurdistan Regional Government (KRG) said on Tuesday that Baghdad transferred more than $60 million less than the amount required to cover May salaries for public employees in the Region, forcing Erbil to borrow funds ahead of Eid al-Adha.
The KRG Ministry of Finance and Economy said Iraq’s Finance Ministry transferred about $674.6 million out of more than $735.4 million needed to fund salaries and pensions, despite the Kurdistan Region depositing roughly $38 million in non-oil revenues to Baghdad before the end of the month.
According to the ministry, Baghdad requested half of the Region’s May non-oil revenues six days before month’s end in what the KRG described as an “unprecedented” accounting measure. The Regional Government said it would borrow funds to cover the gap and ensure salaries are distributed before Eid al-Adha.
Salary transfers remain one of the central disputes between Baghdad and Erbil, alongside disagreements over oil exports and revenue-sharing mechanisms.
Read more: Into 2026, Baghdad and Erbil face the same disputes—with higher stakes
Earlier this year, KRG said Baghdad had transferred only around 41% of Kurdistan’s financial entitlements over the previous three years despite agreements covering oil and non-oil revenues.
Iraq’s Finance Ministry, however, has argued that salary transfers depend on the Kurdistan Region complying with revenue-sharing obligations under the federal budget law.
Source: Shafaq News
