As KRG deposits $64 million into federal account

Al-Sudani says his government committed to Kurdistan salary domiciliation plan

2024-05-27 | 21:38

ERBIL — Prime Minister Mohammed Shia Al-Sudani reaffirmed his government’s commitment to implementing the Federal Supreme Court’s ruling on establishing a salary domiciliation program for employees, pensioners and social-benefit recipients in the Kurdistan Region.

In a meeting with the Central Bank of Iraq and public federal banks to review the implementation procedures of Kurdistan’s salary domiciliation plan, Al-Sudani emphasized the importance of swiftly completing the registration of data for Kurdistan employees to prevent salary delays. He noted that the federal government is responsible for all civil servants across Iraq, ensuring their rights according to the law and the constitution.

The meeting coincided with a statement from the Kurdistan Regional Government (KRG)’s Ministry of Finance announcing a deposit of 85.1 billion dinars ($64.4 million) into the federal Ministry of Finance’s account. The deposit, representing 50 percent of the region’s tax and customs revenues for February 2024, was made according to the monthly adjusted balance sheet reports.

This transfer is part of a deal between the KRG and the federal government to regulate financial and budget relations, requiring the KRG to transfer 50 percent of its monthly non-oil revenues to Baghdad.

While the federal government has disbursed the May salaries for its employees, the KRG has not yet completed the process of paying its employees and pensioners for the month of May.

The KRG has also launched its salary domiciliation program known as My Account, with the federal public Trade Bank of Iraq recently joining the initiative. It is unclear if the salary domiciliation program that Al-Sudani referred to is the same as My Account or if the federal government is developing a separate domiciliation program.