The Iraqi parliament has accepted the law budget of 2021 after three months of discussion, according to a formal letter from the Iraqi ministry of planning the Kurdistan share is increased to (13.9%). While the Kurdistan portion was (12.67%) up to that time, but raising the Kurdistan budget to (13.9%) was based on the number of Kurdistan Region population. As a result, Kurdistan can take roughly 11 trillion dinars from Iraq for 2021. So from now on, Kurdistan has to give the employee’s salary on time by collecting the budget which comes from Iraq in addition to its local incomes, ultimately, salary cutting should be terminated.
On Wednesday 31st of 2021, the Iraqi council of representative has voted on the articles of the Iraqi law budget 2021, one of the critical articles was article 11 which belonged to the Kurdistan Region budget, the material was passed aggregately via the parliament members while some of the materials were amended.
As we mentioned article 11 belongs to Kurdistan, what was the article focused on?
First, settling the financial dues between the federal government and Kurdistan Region from 2004-2020, by the collaboration of both Iraq and Kurdistan Board of Supreme Audits.
Second, in section (A), the Kurdistan region must surrender the price of (250) thousands of crude oils to the federal government every day as resembles the value which SOMO sells daily.
Section (B), section A is implemented between the oil ministry of Iraq and the ministry of natural resources of Kurdistan.
Section (C), the Kurdistan Regional Government (KRG) will abide to give the oil and non-oil revenues to the government treasury following the financial management law of Iraqi federal.
Section (D), KRG must return the credits of the Trade Bank of Iraq, the money which Kurdistan private and governmental banks have borrowed; the Iraqi ministry of finance has made a monthly schedule for Kurdistan to return that loan within 7 years.
Section (E), the Iraqi government will supply the Kurdistan deserves if KRG fulfills the mentioned sections of article 11.
Third, after bilateral auditing of Iraq and Kurdistan Offices of Financial Supervision, KRG has to submit the numbers of civil and military employees in Kurdistan till 30/06/2021.
Fourth, the KRG will adhere to give the salaries of Kurdistan employees and compensate them from that share whenever it identifies in the frame of budget.
What are the benefits of this treaty?
1-Legalizing the oil case for KRG which it can sell its crude oil formally.
2-Getting advantage from the other incomes, for instance, if both follow the rules of the agreement, Kurdistan Region four cities can achieve 520 billion dinars for the development of its cities.
3-Normalizing the relationships between Erbil and Baghdad.
4-The legal issue will tackle with Turkey because the Kurdistan oil pipe will pass across Turkey.
To conclude, KRG has one million, 251 thousand and 451 salary takers presently, 751805 thousand belong to the civil and military employees and 242269 are retired people, KRG needs 895 billion dinars to provide salary without cutting. If the agreement between Baghdad and Erbil puts into action, the employees of the Kurdistan Region are the chief beneficiaries.