The Kurdistan Regional Government (KRG) has resolved the issue of salary delays for security forces in Kurdistan. Deputy Prime Minister Qubad Talabani announced that the salaries for May will be distributed as soon as the ongoing audit by the Iraqi federal government is completed. The KRG has been working closely with the federal government to address the problem and has implemented all the demands made by the federal government. Talabani assured that the salary delays will be resolved in the coming months and that the security forces will receive their salaries on time [aa7b1c21].
This development comes after the KRG reached an agreement with the Iraqi federal government to disburse the salaries of Peshmerga fighters, security forces, and civilian employees. The KRG has sent lists of Peshmerga and security force personnel to Baghdad for verification, and a joint committee has been formed to audit the employee lists. A portion of the May salaries has already arrived and will be distributed soon. The KRG had earlier pledged to disburse all salaries before Eid al-Adha [3b79a33c].
Despite the delays in the approval of the 2024 budget, government spokesman Bassem Al-Awadi assured that salaries are fully secured and amount to 69 trillion dinars. The Minister of Finance will begin funding for the governorates, prioritizing ongoing initiatives [135c1920] [712676db].
The successful implementation of the 2023 federal budget is seen as a stepping stone to stimulate the economic cycle, provide employment opportunities, and meet essential services for all citizens across Iraq [b08c4462] [135c1920]. Prime Minister Mohammed Shia Al-Sudani's emphasis on utilizing the success of the 2023 budget implementation to complete remaining projects aligns with the government's focus on prioritizing expenditure sectors to support service, economic, social projects, and strategic initiatives within the budget framework for the years 2023, 2024, and 2025 [b08c4462] [135c1920]. The government aims to prioritize projects that meet service, health, and social needs, particularly those related to economic reform, investment, and infrastructure development in transportation, health, municipal services, and productive agricultural and industrial programs [b08c4462] [135c1920] [712676db].
Economists have warned of the dangers of the Iraqi federal government's continuously increasing spending, warning of a 'state collapse' if oil prices plummet [3ffedf2b]. The Iraqi state relies heavily on oil as its main source of revenue, leaving it vulnerable to global crises that impact oil prices. Economist Ali Dadoush stated that if oil prices fall below $20 per barrel, it could lead to financial suicide and the collapse of the state or government. The rise in spending this year is attributed to a large number of appointments and investment projects. Economist Ahmed Saddam believes that the parliament will reject the proposed budget for 2024, which raises the deficit to over 80 trillion dinars. Iraq's heavy reliance on oil revenues puts the government in a difficult position, but forecasts suggest that oil prices won't fall severely in 2024 [3ffedf2b].