KRG cabinet slams Baghdad salary cuts, backs medical graduate deployment

ERBIL — The Kurdistan Regional Government’s Council of Ministers convened Wednesday to address the suspension of KRG employee salaries by the federal government and discuss the broader impact of regional tensions stemming from the Israel-Iran conflict.

Prime Minister Masrour Barzani criticized Baghdad’s decision to halt salary payments to public sector workers in the Kurdistan Region, calling it “illegal and unconstitutional,” according to a statement issued after the session.

“In the past few days, we have sent a letter to the Federal Court regarding the illegality and unconstitutionality of the decision to cut the Kurdistan Region’s salaries and financial entitlements by the Federal Ministry of Finance,” Barzani said. “We hope the court will respond positively and in the interest of the people of Kurdistan.”

Tensions between Erbil and Baghdad escalated in May after the federal Finance Ministry ordered a suspension of salary transfers, accusing the KRG of failing to provide verified data on oil and non-oil revenues. The ministry claimed the KRG had already exceeded its allocated share of the 2025 federal budget by over 19 trillion dinars. Kurdish officials have denied the allegations, insisting they have fulfilled all constitutional obligations.

“The Kurdistan Regional Government has fully complied with its constitutional obligations and expects its constitutional rights to be respected and its financial entitlements delivered,” Barzani added.

The council also addressed the ongoing regional conflict and its potential fallout for the Kurdistan Region. “The Kurdistan Region has always been against war, tension, and destruction,” the statement said, reaffirming the region’s commitment to peace and stability. “[The Kurdistan Region] will not be a source of threat to any neighboring country or any party.”

The Council of Ministers also approved a plan by the Ministry of Health to deploy 2024 public medical college graduates to hospitals across the region. The move follows a series of protests by graduates demanding their long-delayed appointments.

Additionally, Interior Minister Rebar Ahmed proposed—and the council approved—an extension of a 20% reduction on traffic violation fines. The extension will apply from July 1 through Dec. 31, 2025.