The Kurdistan Region’s Share of Iraq’s Federal Budget, 2014–2025
- Based on a statement from the Kurdistan Regional Government’s Ministry of Finance and Economy.
- According to the data, the Kurdistan Region’s allocated share before deductions over the past 12 years exceeded IQD 212.7 trillion. However, only IQD 41 trillion and IQD 42 billion was transferred to the Region, representing approximately 19.3% of its total allocated share.
- Although the Kurdistan Region’s budget share was set at 17% under budget laws, later calculated at 12.67%, and estimated at 14.14% based on the population census, the actual transfers amounted to only 4.2% of Iraq’s total budget after deductions and 2.04% of the overall budget.
- Over 144 months (12 years), the funds transferred covered only 46 months’ worth of salaries, equivalent to just 23% of the total months. This highlights the severity of the financial and salary crisis that has affected the Region over the past decade.
- In 2016 and 2017, the amount transferred was zero, despite Iraq’s total budget exceeding IQD 212 trillion across those two years.
- Due to the absence of budget laws in 2014, 2020, and 2022, the federal government classified transfers made to the Kurdistan Region as loans, creating an additional financial burden and liabilities for the Region.
Statement by the Kurdistan Regional Government’s Ministry of Finance and Economy:
Over the past 12 years, the federal government has transferred an average of just 2.04% of Iraq’s total federal budget to the Kurdistan Region.
Over the same period, the federal government transferred approximately IQD 41 trillion to the Kurdistan Region, covering 46 months’ worth of salaries out of a total of 144 months.
During the 12-year period from 2014 to 2025, the average actual transfers made by the federal government to the Kurdistan Region, after deductions for sovereign expenditures, debt, and other obligations, amounted to only 2.04% of Iraq’s total federal budget, rather than the 17% and 12.67% allocated to the Kurdistan Region.
The amount financed by the Federal Ministry of Finance and transferred to the account of the Kurdistan Regional Government’s Ministry of Finance and Economy during this period totalled only IQD 41 trillion and IQD 42 billion, out of IQD 212 trillion and IQD 761 billion allocated for financing. This amount covered approximately 46 months’ worth of salaries for the Region’s employees and beneficiaries, out of 144 months during the period.
Furthermore, for the years 2014, 2020, and 2022, the federal government classified the funds transferred to the Kurdistan Region as loans because no federal budget law was in place. The government intended to deduct these amounts later from the Kurdistan Region’s budget share once the federal budget was approved.
Despite this, data published by the Federal Ministry of Planning in 2024, based on the results of the population census, indicated that the Kurdistan Region’s share of Iraq’s total federal budget amounted to 14.14%.