Kurdistan's share of the budget to be decided soon, Federal government's spokesman says

Shafaq News / The spokesman for the Iraqi Government, Hassan Nazim, stated today that the Kurdistan Region's share in the federal financial budget would be resolved in the upcoming days.

In the weekly press conference held today, Shafaq News agency correspondent asked Nazem, "the Parliamentary Finance Committee made several amendments and additions to the budget bill. At the same time, disputes are still halting agreements over the Kurdistan Region's share. What is the government's position in this regard?"

"The Council of Ministers settled the issue of the region's share of the budget in accordance with the agreement concluded with Baghdad and its approval to the provisions of the internal borrowing law."

In December 2020, Baghdad and Erbil concluded an agreement on the 2021 budget. The agreement stipulated that the region delivers 250 thousand barrels per day plus half of the border-crossings and other non-oil revenues to the federal government in exchange for a 12.6% share of the budget.

However, the Shiite political blocs in Parliament hampered the agreement. Some parties demanded handing the Federal government the entire oil management file in the region, while others opined that the region delivers 500 thousand oil barrels per day to Baghdad.

Nazem said that the issue of the region's share in the 2021 Federal budget would be resolved in the upcoming days.

Regarding the amendments recommended by the Parliamentary Finance Committee to the budget bill, Nazem said, "The government received a draft amendment to the budget bill from the Finance Committee."

"The Council of Ministers assigned a committee to study the amendments," noting, "the council will adjudicate the contested proceedings within the next two days, after which it will be submit it to the Council of Representatives."

On December 22, the Iraqi government approved the 2021 budget of 164 trillion dinars (about 113.1 billion dollars), with a total deficit of 76 trillion dinars (about $ 32.4 billion), and referred it to Parliament.

However, after 560 working hours, the Parliamentary Finance Committee was able to reduce the size of the budget to 130 trillion dinars (about 89.6 billion dollars) and the deficit to 25 trillion dinars (about 17.2 billion dollars).