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KRG to abide by obligations in Iraq’s 2021 budget law

  2021-04-04  | 
 Zhyan News Network
Kurdistan Regional Government (KRG) Minister of Finance and Economy Awat Janab speaks during an interview with KNN a media outlet affiliated with his party the Change Movement (Gorran). The interview was aired on April 3, 2021. Photo by Zhyan News Network via KNN/ Screenshot
 Zhyan News Network


SULAIMANI – Kurdistan Regional Government (KRG) Minister of Finance and Economy Awat Janab said that his government will abide by its obligations within the recently-passed 2021 Federal Budget Law following an agreement inked between the Kurdish representatives and the Shia blocs. 

On March 31, Iraq's Council of Representative passed the belated budget bill after several delays in recent months and disputes among the political blocs, especially between the Kurdistan KRG and the federal authority.

The budget’s article 11 stipulates that the KRG should abide by its obligations to hand over not less than 250,000 barrels of oil per day (bpd) and an amount of non-oil incomes to the federal authority to receive 13.9 percent share from the estimated at 129 Iraqi dinars trillion ($89 billion) budget.

“The budget law will serve the Region in oil policy, especially in revising oil deals, deals with the companies for transporting oil, expenditures, and even the security companies will be under revision, Janab said in an interview with his KNN, a media outlet affiliated with his party the Change Movement (Gorran).

The KRG and the Government of Iraq have been in long-running talks for months to reach an agreement about the former’s budgetary obligations to the latter’s budgetary duties. 

“[Iraq’s] budge law is ostensibly a financial law, but it is a political and legal oil agreement in details,” he said. “Both sides agreed to it in the middle after a long hiatus between the Region and the center, thus it has not carried all the Region’s demands. It also has not carried their all demands,” he said.

Janab believes that the agreement is in favor of the transparency of the KRG’s controversial oil policy.

The budget law also obligates the KRG to abide by obligations to pay its bloated public sector employees.

The cash-strapped KRG still struggles to pay its wage payroll on time and in full following the rise of the global crude oil prices.

It missed five months’ worth of salaries to its public servants and paid one in full and slashed others by either eighteen or twenty-one percent in 2020 citing the COVID-19 pandemic, budget with Baghdad and low oil prices.

(Zhyan News Network)