By John Lee.
The Kurdistan Regional Government (KRG) has outlined what it claims is a significant funding shortfall in transfers from the Federal Government over the past three years, describing the situation as a "financial gap" and an effective blockade on investment.
According to its data, the Kurdistan Region's total constitutional entitlement between 2023 and 2025 amounted to IQD 58.3 trillion (approximately USD 44.8 billion), while actual receipts did not exceed IQD 24.3 trillion (around USD 18.7 billion). This represents just 41 percent of the Region's financial rights and about 3.9 percent of Iraq's total federal budget.
The data also showed that despite the Federal Government allocating IQD 165 trillion (approximately USD 126.9 billion) for investment spending nationwide, the Kurdistan Region received no funding for investment projects, resulting in the suspension of key infrastructure schemes.
Regarding the oil industry, the KRG said the suspension of crude exports led to losses of around USD 25 billion to the Iraqi economy. Since exports resumed in late 2025, the Region has pumped 19.5 million barrels through the State Oil Marketing Organisation (SOMO).
On public sector pay, it says the Federal Government did not finance a full 12 months of salaries in any of the three years from 2023 to 2025, leading to accumulated unpaid dues.
The KRG also said it transferred IQD 919 billion (around USD 707 million) in non-oil revenues to the federal treasury during 2025, describing this as evidence of its financial commitment despite delays in receiving its own entitlements.
Click here to view the full report.
(Source: KRG)
Comments are closed.