SULAIMANI (ESTA) — Kurdistan Region President Nechirvan Barzani and Kurdish parties on Thursday hoped the approval of budget law will pave the way for resolving issues between Baghdad and Erbil on the basis of Iraqi constitution.
Barzani and leaders of the political parties including the Patriotic Union of Kurdistan (PUK), Kurdistan Democratic Party (KDP), Change Movement, Kurdistan Justice Group and Kurdistan Islamic Union as well as representatives of minorities met in Erbil on Thursday morning.
The sides discussed the latest developments in the Kurdistan Region and Iraq, foreign relations with international community, Barzani’s recent visit to France, role of the Kurdistan Region in new policy, Baghdad and Erbil relations, U.S.-Iraq strategic dialogue, and upcoming elections in Iraq, according to the Kurdistan Region presidency.
They stressed “the need and importance of unity, reconciliation, negotiations and understanding between the political parties to solve the issues,” the Region’s presidency said in a statement.
Barzani and leaders of the parties said the approval of Iraq’s federal budget law was a “positive step” to develop relations between the Kurdistan Region and Baghdad, the statement read.
They hoped “the law will be implemented … and will pave the way for resolving issues both sides on the basis on Iraqi constitution and in the framework of federal system,” it said.
The Iraqi Council of Representatives 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.
The budget deficit is estimated at 28.7 trillion Iraqi dinars ($19.79 billion).
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%.
