๐ผ ERBIL PRESENTS A NEW PROPOSAL TO BAGHDAD REGARDING NON-OIL REVENUES ๐ฐ⚖️
(Will this finally solve the budget dispute?)
๐ HIGHLIGHTS: A Fresh Move to End the Budget Deadlock ๐
๐ 1. KRG Proposes New Revenue-Sharing Deal ๐ธ๐ค
The Kurdistan Regional Government (KRG) has submitted a new proposal to Baghdad's Ministry of Financeregarding non-oil revenues, aiming to ease tensions over budget and salary disputes.
๐ The plan includes:
KRG handing over 50% of revenues collected by federal institutions operating inside Kurdistan.
Revenues include passport fees, national ID fees, border crossing revenues, and more.
๐ 2. From 60–70 Billion → to 100 Billion Dinars ๐ต
๐ก This new arrangement could boost KRG’s monthly non-oil revenue transfers to
100 billion dinars, up from the current 60–70 billion.๐ Baghdad’s 2024 revenue report expects 180+ billion dinars from the KRG, so this is a step toward narrowing the gap.
⚖️ 3. Historical Tug-of-War Over Fees ๐
Previously:
Both Erbil and Baghdad claimed 100% ownership over fees collected from federal institutions within the Region.
The Iraqi Ministry of Finance insisted that all revenue generated in Kurdistan should go to Baghdad.
This proposal suggests a 50/50 compromise, which could mark a major breakthrough in their long-standing disputes.
๐️ 4. Proposal Now on Al-Sudani’s Desk ๐️
✅ The proposal has already been submitted to the legal advisor to Iraqi PM Mohammed Shia al-Sudani.
๐
A final decision is expected during the next Council of Ministers meeting.
If approved, it could:
๐ผ Unlock blocked federal salary payments to the KRG
๐ Pave the way for a longer-term budget solution
๐ฃ️ Move Iraq closer to finalizing the HCL (Hydrocarbon Law)
๐งฉ 5. Why It Matters for Investors ๐ฆ
This move shows serious efforts to resolve fiscal autonomy issues, a key part of the Oil and Gas Law puzzle ๐งฉ
✅ More revenue discipline from KRG
✅ Better transparency and control for Baghdad
✅ A positive signal for the IMF, World Bank, and international stakeholders
The reinstatement of the dinar and progress toward economic reform depend on these kinds of practical compromises.
๐️ Final Thought:
Is this a real breakthrough, or just more bureaucracy? Time will tell. But this 50/50 proposal is the clearest sign yetthat both sides are inching closer to a workable solution. ๐ผ๐ฎ๐ถ
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