SULAIMANI (ESTA) — Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani said on Wednesday the approval of the federal budget bill is a “milestone moment” for the Kurdish government and restores a “sliver of hope” about the relationship between Erbil and Baghdad.
Earlier, the Iraqi Council of Representatives passed the country’s federal budget bill for fiscal year 2021, months after disputes between parties over several issues.
The prime minister said the KRG would be able to start to recover from an era of “unparalleled economic challenges” in the Kurdistan Region.
“This law was an accommodation, and a necessary one for Iraq and the Kurdistan Region,” Barzani said in a statement. “We did not get everything we wanted, but the law is consistent with key principles of the constitution from which we have not wavered. Positions dear to both sides have been recognized and we are encouraged and heartened by the progress made.”
“I hope to see every article of the budget law implemented and federal payments finally restored to the KRG. Its full implementation would provide both governments with recourse against the disputes over payments since 2004. And it would also foster a new mechanism between the federal and regional auditing bodies. These steps will underpin restored cooperation and trust, essential tenets of all we will go on to achieve.”
Lawmakers approved article 10 and 11, which is related to the Kurdistan Region’s share of the federal budget. The Region’s share is set at 12.67 percent.
Coordinator of the committee of finance Ahmad Safar said article 11 includes five clauses. The first clause states the entitlements of the Kurdistan Region and the federal government between 2003 and 2020 should be settled.
Another clause estimates the amount of oil production at the Kurdistan Region’s oilfields at 460,000 barrel per day (bpd), Safar added. Erbil is committed to hand over money of 250,000 bpd to Baghdad in the price that SOMO sells Iraq’s oil, according to another clause of article 11.
The fourth section abides the Kurdistan Region to hand over 50 percent of non-oil revenue to Baghdad, he noted. The last clause states that Baghdad and Erbil are committed to implementing article 11.
“Otherwise, it won’t be implemented,” the fifth clause says, according to Safar.
The Iraqi Council of Representatives also decided to dissolve the parliament on October 7 if early elections are held on October 10.
The KRG premier said he had spoken with Iraqi Prime Minister Mustafa al-Kadhimi to thank him for his support and that he had urged him to “live up to these obligations and restore payments as soon as possible”.
“The budget law has restored a sliver of hope about the relationship with the federal government,” Barzani said.
“Though it cannot address the long list of disputes, or undo the unfairness of the past, I hope it will help bring more certainty to the lives of our citizens.”
