KRG reaffirms commitment to fulfilling financial obligations under Iraq’s budget law

File – Flags of Iraq and Kurdistan

SULAIMANI (ESTA) — The Kurdistan Regional Government (KRG) has reaffirmed its commitment to fulfilling the Region’s financial obligations under the federal budget law for 2021, the KRG department of media and information said on Monday.

“In a letter to the Federal Iraqi Government’s Ministry of Finance, dated April 13, 2021, the KRG Ministry of Finance and Economy affirmed its commitment to fulfilling the Kurdistan Region’s financial obligations within the framework of the 2021 Iraqi Federal Budget Law and outlined practical steps will be taking,” it said in a statement.

On March 31, the Iraqi parliament approved the federal budget of 130 trillion Iraqi dinars ($89.65 billion) as the country wrestles with an economic and financial crisis due to low crude prices.

After months of wrangling, the Kurdistan Regional Government (KRG) and the central government reached an agreement on thorny issues, including oil and non-oil revenues.

Under the 2021 budget law, the Kurdistan Region will be committed to produce 460,000 barrels of oil per day (bpd).

After deducting expenses for production operations in the Region, transport of oil and the domestic consumption of crude oil, the KRG must hand over to Baghdad revenues generated from regional oil exports of 250,000 bpd, according to Iraq’s SOMO pricing, as well as 50 percent of non-oil revenue.

The Kurdistan Region, in return, will receive its share of the budget, which is set at 13.9%.

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