There will be no salary issues in Region, if Erbil, Baghdad abide by draft 2021 Iraqi Budget Law: MP
[You must be registered and logged in to see this image.]Lawmaker of Iraq’s Council of Representatives Shirwan Mirza speaks to NRT Tawtwe interview program regarding the Iraqi in Baghdad, Iraq. (Photo Credit: NRT Digital Media/ Screenshot)
SULAIMANI — Member of the Council of Representatives’ Finance Committee Shirwan Mirza said on Sunday (January 10) that the Kurdistan Regional Government (KRG) will be able to pay salaries to public sector employees each month on time if it adheres to the terms of the draft 2021 Federal Budget Law.
“According to the draft law, approximately one trillion Iraqi dinars [$683.68 million] will be delivered to the Kurdistan Region from Baghdad,” Patriotic Union of Kurdistan’s (PUK) lawmaker Mirza [You must be registered and logged in to see this link.] during an interview with NRT Tawtwe interview program.
He called on the KRG to commit to the federal budget bill and sign an agreement with the federal oil exporter SOMO to hand over an amount of oil determined by the latter in order to receive its budget share every month.
“There will be more tensions and discussions on the draft 2021 budget law between the [Kurdistan] Region and Baghdad,” Mirza predicted. “The budget law will not easily be passed [by Council of Representatives] and will involve more discussions.”
He also said that the political parties have promised Iraqi Prime Minister Mustafa al-Kadhimi that parliament will pass the budget bill quickly.
“But some Iraq’s political parties want to impose the central authority over the Region,” he warned.
On Saturday, the Council of Representative [You must be registered and logged in to see this link.] the first reading of the bill.
Finance Committee Rapporteur Ahmed Safar told the state-run al-Sabah newspaper that a second reading of the draft legislation will likely take place on Monday and Tuesday. It will then be referred to the Finance Committee.
On December 21, the Council of Ministers [You must be registered and logged in to see this link.] and sent the draft 2021 federal budget bill to legislators for consideration and a vote, but rejected cuts in allowances for public sector workers.
Controversially, it also includes a [You must be registered and logged in to see this link.], in order to protect the country’s dollar reserves.
Spending in the budget will total 150 trillion Iraqi dinars ($103 billion), but carry a deficit is 63 trillion dinars ($52.94 billion). The estimated price of oil is set at $42 per barrel.
Tensions between the KRG and the federal government deteriorated in April when Baghdad cut off all funding to the KRG following Erbil’s fifteen-month refusal to send oil to the federal government as it was required to under the 2019 Federal Budget Law.
As the KRG’s finances [You must be registered and logged in to see this link.] steadily worse and it was unable to pay public sector salaries on time and in full, anger with the authorities in Erbil increased, boiling over into public protests in Erbil and [You must be registered and logged in to see this link.]in the summer and [You must be registered and logged in to see this link.] and [You must be registered and logged in to see this link.] and [You must be registered and logged in to see this link.] this month.
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