DINAR REVALUATION REPORT: Unification of Financial and Accounting Systems between Erbil and Baghdad, 7 SEPT

 Unification of Financial and Accounting Systems between Erbil and Baghdad

The Kurdistan Regional Government (KRG) and the federal government of Iraq have recently taken a significant step towards unifying their financial and accounting procedures. 1 This move, approved by the Regional Council of Ministers, aims to harmonize the financial systems of Erbil and Baghdad while respecting the constitutional status and powers of the KRG. 1

Background of Financial Discrepancies

Since 2014, the KRG's budget was cut, leading to the development of separate financial systems between Erbil and Baghdad. 1 This situation complicated financial relations and posed challenges for the region's economic stability. The new phase aims to reorganize these relations, which is crucial for both governments. 1

Impact on Retirees

The unification of financial procedures has brought positive changes for retirees in the Kurdistan region. As of the month of the approval, retirees in the region receive pensions equal to those of Iraqi retirees.  1 This alignment of pensions has been welcomed by the KRG, which congratulated retirees on this development. 1

Commitment to Retirees

The Kurdish Prime Minister, Masrour Barzani, has expressed his government's commitment to supporting retirees, acknowledging their contribution to public service. 1 The alignment of pension amounts is a step towards addressing the needs of retirees and ensuring they receive the assistance they deserve. 1

Challenges in Relations

Despite the positive developments in financial unification, relations between Erbil and Baghdad have faced complications. The finance ministry of Iraq began paying the salaries of the KRG's civil servants in compliance with a recent court ruling.  3 However, the resignation of a Kurdish judge from the federal court has introduced further complexities. 3

The judge's resignation was in protest of the court's rulings, which he perceived as undermining the principles of the federal system and impacting the rights of the Kurdistan Region. 3 These developments highlight the ongoing challenges in the relationship between Erbil and Baghdad. 3

Conclusion

The unification of financial and accounting procedures between Erbil and Baghdad represents a significant effort to streamline financial relations and harmonize systems. While this move has positive implications for retirees and the region's financial stability, ongoing challenges in the relationship between the two governments remain a concern. The commitment of both the KRG and the federal government to addressing these challenges will be crucial for the success of the unification efforts.