💼 ERBIL PRESENTS A NEW PROPOSAL TO BAGHDAD REGARDING NON-OIL REVENUES 💰⚖️

1 month ago 5

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(Will this finally solve the budget dispute?)

📌 HIGHLIGHTS: A Fresh Move to End the Budget Deadlock 📌

🆕 1. KRG Proposes New Revenue-Sharing Deal 💸🤝

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.

🔁 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.

📈 2. From 60–70 Billion → to 100 Billion Dinars 💵

💡 This new arrangement could boost KRG’s monthly non-oil revenue transfers to

100 billion dinars, up from the current 60–70 billion.

📊 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 🔁

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.

🗂️ 4. Proposal Now on Al-Sudani’s Desk 🖋️

✅ The proposal has already been submitted to the legal advisor to Iraqi PM Mohammed Shia al-Sudani.
📅 A final decision is expected during the next Council of Ministers meeting.

If approved, it could:

💼 Unlock blocked federal salary payments to the KRG
🔑 Pave the way for a longer-term budget solution
🛣️ Move Iraq closer to finalizing the HCL (Hydrocarbon Law)

🧩 5. Why It Matters for Investors 🏦

This move shows serious efforts to resolve fiscal autonomy issues, a key part of the Oil and Gas Law puzzle 🧩
✅ 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.

🕊️ 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. 💼🇮🇶