🔹 Salary expenditures have accounted for the largest share of budget spending. In 2019, they represented 77.6% of total expenditures. Although the share fell to 69.9% in 2025, salaries remained the government’s largest financial expenditure.
🔹 Operational expenditures increased over the past seven years and consumed a significant portion of the budget, rising from IQD 1.8 trillion in 2019 to IQD 2.77 trillion in 2025.
🔹 Comparing expenditure data with revenue data shows that spending in 2024 and 2025 was heavily dependent on funding received from Baghdad. This indicates that the Kurdistan Region increasingly relied on the federal government to cover its expenditures.
Introduction
Based on data from the Kurdistan Regional Government’s Ministry of Finance and Economy, government expenditures between 2019 and the end of 2025 reflected the region’s financial crises, changes in economic policy, and continued pressures on the public budget.
According to the ministry’s data, the Kurdistan Regional Government remained under the heavy burden of salary expenditures, which continued to constitute the backbone of total spending. At the same time, efforts to diversify expenditures through investment experienced significant fluctuations.
This report examines how the distribution of revenues and expenditures affected the government’s ability to implement strategic projects.
Detailed KRG Expenditures (2019–2025)
According to data from the Kurdistan Regional Government’s Ministry of Finance and Economy, total expenditures—including salaries, operational expenditures, electricity expenditures, and investment expenditures—underwent significant changes in both size and composition between 2019 and the end of 2025.
2019
Total expenditures: IQD 13 trillion, 732 billion, 836 million, distributed as follows:
Salary expenditures: IQD 10 trillion, 650 billion, 887 million, accounting for 77.6% of total expenditures.
Operational expenditures: IQD 1 trillion, 885 billion, 627 million, accounting for 13.7%.
Electricity expenditures: IQD 425 billion, 810 million, accounting for 3.1%.
Investment expenditures: IQD 770 billion, 512 million, accounting for 5.6%.
2020
Total expenditures: IQD 8 trillion, 694 billion, 157 million, distributed as follows:
Salary expenditures: IQD 6 trillion, 275 billion, 50 million, accounting for 72.2% of total expenditures.
Operational expenditures: IQD 1 trillion, 824 billion, 554 million, accounting for 21.0%.
Electricity expenditures: IQD 501 billion, 372 million, accounting for 5.8%.
Investment expenditures: IQD 93 billion, 181 million, accounting for 1.1%.
2021
Total expenditures: IQD 12 trillion, 386 billion, 545 million, distributed as follows:
Salary expenditures: IQD 9 trillion, 497 billion, 658 million, accounting for 76.7% of total expenditures.
Operational expenditures: IQD 1 trillion, 807 billion, 863 million, accounting for 14.6%.
Electricity expenditures: IQD 637 billion, 513 million, accounting for 5.1%.
Investment expenditures: IQD 443 billion, 511 million, accounting for 3.6%.
2022
Total expenditures: IQD 12 trillion, 789 billion, 706 million, distributed as follows:
Salary expenditures: IQD 9 trillion, 895 billion, 456 million, accounting for 77.4% of total expenditures.
Operational expenditures: IQD 1 trillion, 888 billion, 822 million, accounting for 14.8%.
Electricity expenditures: IQD 661 billion, 33 million, accounting for 5.2%.
Investment expenditures: IQD 344 billion, 395 million, accounting for 2.7%.
2023
Total expenditures: IQD 11 trillion, 357 billion, 365 million, distributed as follows:
Salary expenditures: IQD 8 trillion, 283 billion, 815 million, accounting for 72.9% of total expenditures.
Operational expenditures: IQD 1 trillion, 869 billion, 344 million, accounting for 16.5%.
Electricity expenditures: IQD 717 billion, 707 million, accounting for 6.3%.
Investment expenditures: IQD 486 billion, 499 million, accounting for 4.3%.
2024
Total expenditures: IQD 14 trillion, 265 billion, 341 million, distributed as follows:
Salary expenditures: IQD 10 trillion, 709 billion, 736 million, accounting for 75.1% of total expenditures.
Operational expenditures: IQD 2 trillion, 222 billion, 864 million, accounting for 15.6%.
Electricity expenditures: IQD 646 billion, 566 million, accounting for 4.5%.
Investment expenditures: IQD 686 billion, 175 million, accounting for 4.8%.
2025
Total expenditures: IQD 14 trillion, 326 billion, 901 million and 626 thousand, distributed as follows:
Salary expenditures: IQD 10 trillion, 21 billion, 31 million and 360 thousand, accounting for 69.9% of total expenditures.
Operational expenditures: IQD 2 trillion, 773 billion, 363 million and 875 thousand, accounting for 19.4%.
Electricity expenditures: IQD 482 billion, 584 million and 29 thousand, accounting for 3.4%.
Investment expenditures: IQD 1 trillion, 49 billion, 922 million and 362 thousand, accounting for 7.3%.