SULAIMANI – A member of the Kurdistan Parliament’s Finance Committee Sherko Jawdat said on Saturday (March 13) that the Kurdistan Regional Government (KRG) can pay salary to public sector employees on time and in full without delays and cuts.
Jawdat told Zhyan News Network that the KRG has not updated the committee about rise in the incomes after the prices of crude oil and USD to the Iraqi dinar have considerably risen.
“The government can pay salary without cuts, but it is not distributing it without cuts due to corruption and injustice,” he said.
In December 2020, the Central Bank of Iraq slashed the official exchange rate by nearly 23% amid deepening economic problems. The federal bank set the new rate for the dinar to the US dollar at 1,450 IQD when selling to the Iraqi Ministry of Finance.
The dinar will be sold to the public at 1,470 IQD and to other banks at 1,460 IQD.
“The KRG can pay salary without cuts because both prices of oil and dollar have risen,” expert in energy Bahroz Jaafar told Zhyan News Network.
The Kurdistan Regional Government (KRG) and the federal government have been in long-running negotiations regarding the amount of oil or in-kind and a portion of non-oil incomes it should submit to the federal authority to receive its budget share in return.
But contentious issues in the draft-budget law are yet to be addressed between the Iraqi federal government and the Kurdistan Region.
Member of the federal Council of Representatives’ Finance Committee Thamer Theban told the Iraqi state media Iraqi News Agency (INA) that "the budget provisions will go ahead in Monday's session, whether or not there is an agreement with the [Kurdistan] Region."
The deficit in the fiscal year stands at “28.6 trillion, which requires more than $ 19 billion to reach the break-even point between revenues and expenditures.”
The price of oil has been pegged at 45$ for each barrel within the current draft federal law for 2021, but there is a possibility the price will be increased following the current rises in oil prices.