KRG blames Baghdad for January salary shortfall
Shafaq News- Erbil
The shortfall in January salary funding was due to incomplete transfers from Iraq’s Ministry of Finance, the Kurdistan Regional Government (KRG) Ministry of Finance and Economy said on Thursday, placing responsibility for any deductions or delays over the past three years on Baghdad.
In a statement, the Kurdish ministry noted that more than 36 billion Iraqi dinars (about $27M) were deducted from January’s salary funding and not transferred to the Region. The amount, it said, relates to pensions for several months owed to civilian and military retirees, as well as to individuals disabled in combat.
“Some retirees received only one payment despite being entitled to several months of pensions,” the statement noted, adding that the ministry had formally requested on January 27, 2026, the transfer of 281.1 billion dinars (about $214.5M) to cover January pensions, including the disputed 36 billion dinars (about $27.5M). However, it received 244.7 billion dinars (about $186.7M) from the federal government.
On February 12, the ministry sent a second letter to Baghdad requesting the transfer of 36.36 billion dinars (about $27.7M) to complete funding for salaries and pension entitlements for the same month. In response, Iraq’s Ministry of Finance clarified that the financial differences “would be addressed in accordance with legal procedures when preparing the 2026 federal budget tables.”
It stated that funding procedures were carried out in line with Iraq’s legal and financial regulations, releasing payments under the “1/12 spending rule,” a mechanism that allows monthly disbursements based on one-twelfth of the previous year’s budget allocations. “Payments were issued only to employees and retirees registered and verified in the ministry’s official records.”
