News publishes the text of the Baghdad and Erbil agreement papers on revenues and salaries
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Shafaq News Agency publishes the text of the two agreement papers between the governments of Baghdad and Erbil, which were discussed by the Iraqi Council of Ministers during its session held today, Tuesday. The agreement is part of efforts to resolve outstanding financial issues between the two parties, particularly those related to revenues and expenditures under the federal budget law.
A delegation from the Kurdistan Regional Government arrived in Baghdad on Monday for the second time in two weeks, carrying the region's response to the proposals recently presented by the federal government. This is a prelude to direct negotiations on the proposals, amid expectations that a vote on the final version of the agreement will be held during the cabinet session.
According to a Shafaq News Agency correspondent, the two papers include details regarding the region's transfer of its oil and non-oil revenues, as well as the organization and localization of its employees' salaries, in compliance with Federal Court rulings and the General Budget Law.
Earlier today, the Prime Minister's media office announced that Mohammed Shia al-Sudani had directed the formation of a committee headed by the Deputy Prime Minister and Minister of Planning, and including the Ministers of Construction and Housing, Higher Education, Justice, and Health, to discuss the two papers with relevant authorities in both governments.
The committee is scheduled to submit its recommendations to the Cabinet for an appropriate decision as soon as possible.
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Kurdistan Regional Government Paper 2
(2) The offset is made between the federal treasury's share and the region's dues to the federal government (from allocations for operational and investment expenses and covering other financial obligations, purchasing natural gas to provide fuel for power plants.
Third: Disbursing the region's salaries
The Federal Ministry of Finance must resume disbursing the region's salaries for the months of May and June 2025 and subsequent months until the next federal general budget law is approved, in light of the Federal Supreme Court's decision No. (224) and its unified /269 Federal (2023), which stipulates that the dispute between the federal government and the regional government over the implementation of the federal general budget law should not be the main reason for not disbursing the region's salaries on their due dates, and requires achieving actual equality between salary recipients and their counterparts in the federal government in terms of the amount of salary and due dates.
Kurdistan Regional Government Paper 1
Iraq
First: Oil Delivery:
(1) First Phase:
(1) Oil Delivery:
First Proposal (in the event of companies participating)
Immediately begin delivering oil produced in the region to the State Oil Marketing Organization (SOMO) for export purposes (in the event of an agreement on the scope of work of the technical advisory body according to the Federal Budget Amendment Law between the federal government, the regional government, and the relevant companies, with the exception of a quantity for local consumption (clarification: current production is 282,000 barrels per day, minus 65,000 barrels per day for local consumption purposes, through the Joint Measurement and Calibration Committee).
Second Proposal (in the event of companies not participating)
Immediately begin delivering the available quantity, estimated at 100,000 barrels per day of oil produced in the region, to the State Oil Marketing Organization (SOMO) for export purposes until an agreement is reached on the scope of work of the technical advisory body according to the Federal Budget Amendment Law between the federal government, the regional government, and the relevant companies).
(2) Local consumption of oil is the responsibility of the region, including management, distribution, and payment of the cost of production and transportation for a quantity of 65,000 barrels per day.
Second: Non-oil revenues
(1) The region will continue to deliver the federal treasury’s share of non-oil revenues according to the Federal Financial Management Law (50%) of customs duties and income tax
Federal Government Paper 2
Third: Forming a joint committee between the federal government and the regional government to complete the localization of the region's salaries in accordance with the decision of the Federal Court and within a maximum period of (90) ninety days, and funding at the end of the aforementioned period shall be exclusively for the localized salaries.
Fourth: Forming a joint legal and technical committee between the federal government and the regional government based on Article 13/Seventh) of the Federal General Budget Law No. 13 of 2023 as amended to prepare a legal study to solve the problem of exceeding the region's share of the budget based on actual spending, and submitting the legal study in a report to the Federal Council of Ministers within two weeks
Fifth: The Federal Ministry of Finance will begin financing the region's salaries after the implementation of paragraphs (first, first phase, second, third, fourth) by the region, and after the approval of the Federal Council of Ministers.
Clarification by presenting the above-mentioned agreement implementation report at the nearest session of the Federal Council of Ministers after fulfilling what is required.
Receiving the region's official approval of the terms of this agreement and naming the members of the joint committees.
2. Delivering oil according to the quantities mentioned in paragraph (first), based on a joint report from SOMO and the North Oil Company.
3. Delivering non-oil revenues according to the amounts due and mentioned in paragraph (second), or offsetting their value from salary financing.
Appointing members of the localization committee according to paragraph (third)
5. We will appoint members of the legal and technical committee and submit its recommendations to the Council of Ministers according to paragraph (fourth).
Salaries will be released immediately after the Federal Council of Ministers' decision to report on the implementation of this agreement
Text of Article (12) of the Federal General Budget Law No. (13) of 2003, which stipulates that the Kurdistan Regional Government shall hand over technical revenues to the State Treasury, in accordance with the Federal Financial Management Law, provided that the Federal Financial Supervision Bureau, in coordination with the Financial Supervision Bureau in Education, shall implement the data (region ownership of revenues).
According to the reports of the Financial Supervision Bureau, the total non-operational revenues of the regional government amounted to approximately 10 trillion dinars for both the years 2003 and 2004. General Resolution No. (204) and its unit 200 / Finance / 2003) Global Power Hand (If)
According to the text of the German General Budget Law, the status and the decision of the Federal Court, with the clarification that all regions of Iraq are subject to the standard (educational horizons) for calculating allocations in the general budget of the United States, the technical expenditures for which all Iraqis work equally, the regular billions in the Yemeni (20 (80) of the actual horizon, and the region’s share shall be (1612.67) of the expenditures.
Federal Government Paper 1
First: Oil Delivery
A- First Stage:
1- Immediate direct oil delivery by delivering the entire quantity currently produced and any future increase in production from the fields located in the region to the Federal Ministry of Oil, the State Oil Marketing Organization (SOMO) for export purposes, and the revenues shall be transferred to the federal public treasury in accordance with the law, except for a quantity for local consumption, i.e., the immediate delivery of 236,000 barrels per day (clarification: current production is 282,000 barrels per day, minus 46,000 barrels per day for local consumption, according to the joint report of the Federal Board of Supreme Audit and the Regional Board of Audit, through the Joint Measurement and Calibration Committee. The regional government bears responsibility for delivering the entire quantity (the) 236,000 barrels/day and obligating the companies operating in the region to do so
2 - Local oil consumption. Local consumption is the responsibility of the region at this stage (management, distribution, and payment of $16 per barrel to companies for production and transportation) until the completion of the second stage (below). Revenues from sales of petroleum products for the quantities of crude oil supplied to the region for local consumption mentioned above will return to the federal government after deducting the costs of production, transportation, and refining.
The second stage begins immediately, in parallel with the first stage, and continues for 30 days.
Calculating the required amount of local consumption by having the federal Ministry of Oil, in coordination with the Ministry of Natural Resources in the region, analyze the actual need of the region's citizens for petroleum products that must be covered, either by the federal Ministry of Oil according to the ministry's economic and technical model, or by the region according to the current reality and in accordance with the law and equivalent to the aforementioned amount
Article (12) / Second) of the Federal General Budget Law No. (13) of 2023, as amended, stipulates that the Kurdistan Regional Government, in coordination with the Federal Ministry of Oil, is obligated to ship the general oil produced from the fields located in the region to the stores of the State Oil Marketing Organization (SOMO) in the Turkish port of Ceyhan, at a rate of no less than (400) four hundred thousand barrels per day.
The Federal Government offered to export the entire oil produced in the region, provided that the Federal Ministry of Oil would provide the citizens of the region with practical derivatives from the rest of the regions of Iraq, and through the Oil Products Distribution Company. However, the Regional Government did not agree to the proposal, and it was agreed that this would be studied during the second phase of this paper.
According to the official meetings with the region, the Ministry of Natural Resources in the region and the Regional Government stated that the entire current production quantity of 202 thousand barrels will be exported at a rate of 20-30 thousand barrels per day within a month, and that the Regional Government is still unable to
The daily budget stipulated in the Budget Law, the rates mentioned in the reports of the Board of Supreme Audit for the years 2023 and 2024, and according to data from the Ministry of Natural Resources in the region.
Law No. (14) of 2025, the Law Amending the Federal General Budget Law.
Source: Iraqi cabinet session ends without any decision on Kurdistan employees' salaries
An informed source reported today, Tuesday, July 8, 2025, that the Iraqi Council of Ministers did not make a decision in its session today regarding the salaries of the Kurdistan Region.
The source told Baghdad Today, "The Iraqi Council of Ministers decided to form a committee to resolve the salaries issue and did not take any decision regarding sending salaries."
He pointed out that "the Council's session ended without taking any decision regarding the salaries of Kurdistan Region employees."
An informed source had previously reported to Baghdad Today that "a delegation from the Kurdistan Regional Government held continuous meetings in Baghdad with the federal government to finalize the draft oil and financial agreement.
The source explained today that "the draft includes the delivery of 300,000 barrels per day of the region's oil to Baghdad, and the transfer of 90 billion dinars from border crossings' revenues to the federal treasury," noting that "the federal government will undertake the distribution of oil derivatives in the region at the subsidized price, similar to the rest of the governorates."
He added that "the salary file is still pending, as no agreement has yet been reached on the disbursement mechanism, whether through the "My Account" platform or through settlement in federal banks."
a different version:
Media reported on Tuesday that the Iraqi Council of Ministers meeting concluded without reaching a definitive decision regarding the salaries of Kurdistan Region employees.
These outlets reported that no decision was made to pay salaries during the meeting, but it was decided to form a committee comprising five Iraqi government ministries (Planning, Finance, Health, and Higher Education). It will engage in dialogue with the Kurdistan Region to discuss the draft.
She indicated that the committee will hold discussions with the Kurdistan Region delegation regarding the two drafts, and once agreement is reached on one of them, an emergency meeting of the Iraqi government will be held to make a final decision on these issues.
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A committee of five ministers... The Iraqi government postpones a decision on Kurdistan employees' salaries.
Earlier, a government source reported that the issues of employee salaries and oil exports from the Kurdistan Region were included on the agenda of the Iraqi Council of Ministers during its session today.
An Iraqi cabinet source told the Al-Jabal platform that "the salaries and oil issues in the Kurdistan Region are on the agenda of the Iraqi cabinet."
Early last week, a government delegation from Baghdad arrived in Erbil to discuss the issue of Kurdistan Region employees' salaries, which the federal government decided to suspend a month ago. The delegation also discussed the resumption of oil exports from the Kurdistan Region and the possibility of reaching a final solution to the dilemma.
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