In its latest financial analytical report and database covering 2014 to 2025, the Kurdistan Regional Government’s Media and Information Department, in coordination with the Ministry of Finance, revealed that over the past 12 years, the federal government systematically deducted more than 65 trillion dinars from the people of Kurdistan’s share under the heading of “sovereign expenditures” without sending any corresponding funds. At the same time, out of 144 months, it sent only 41 trillion dinars—enough to cover just 46 salaries—thereby depriving the Kurdistan Region’s employees of eight years of salaries from Baghdad.
In its latest analytical and statistical report, published on 7 November 2026 by the Kurdistan Regional Government’s Media and Information Department in coordination with the Ministry of Finance and Economy, data on the Region’s share under federal budget laws over the past 12 years (2014-2025) was presented. The report demonstrates with figures that the Region’s financial crisis resulted from a systematic mechanism to reduce the financial entitlements of the people of Kurdistan through unfair deductions for sovereign expenditures and non-compliance with budget laws.
According to data from Iraq’s federal general budgets, the Kurdistan Region contributed more than 65 trillion dinars to sovereign expenditures, while only 41 trillion dinars was sent to the Region, and no amount from sovereign expenditure allocations was sent to the Kurdistan Region.
According to official data, Iraq’s total budget over the past 12 years reached one quadrillion and 767 trillion dinars. Of this amount, the Kurdistan Region’s total share before deductions for sovereign expenditures was more than 245 trillion dinars. After those deductions, the Region’s legal net entitlement on paper was 146 trillion dinars.
In practice, however, the federal government sent only 41 trillion dinars to the Region as financial provision throughout those 12 years. This means that, in reality, the Kurdistan Region received only 2.04% of Iraq’s total budget, while its official share was 17% from 2014 to 2017 and was reduced without a legal basis to 12.67% from 2018 onward.
Furthermore, out of the 144 months for which money was sent from Baghdad, the funds covered only 46 salaries, while salaries for eight years of the Region’s employees were not sent.
Direct impact on employees (46 salaries out of 144 months)
Economic analyses show that, since 2015, the federal government has tied Kurdistan’s share to the condition of “actual expenditures” without the consent of the Regional Government, dealing with it only within the framework of salaries. Of the 144 months between 2014 and 2025, the 41 trillion dinars sent covered salaries for only 46 months—nearly four years—while salaries for eight years were not sent. This forced the Regional Government to resort to directly exporting oil to provide citizens’ livelihoods.
Budget transfers and the Region’s share by year (2014-2025)
• 2014: Out of Iraq’s budget of 174.6 trillion dinars, the Region’s net share was 20 trillion dinars. However, only 2.28 trillion dinars was sent—1.3% of the budget—to cover three months of salaries.
• 2015: Out of 119.5 trillion dinars, the Region’s net share was 14.8 trillion dinars. However, only 2.47 trillion dinars was sent—2.07% of the budget—to cover three months of salaries.
• 2016 and 2017: The Region’s net share was 13.1 trillion dinars in 2016 and 11.6 trillion dinars in 2017, but Baghdad sent no funds in either year (0.00%).
• 2018: The Region’s share was reduced to 12.67%. Out of 104.1 trillion dinars, the Region’s net share was 6.8 trillion dinars, but only 2.85 trillion dinars was sent—2.74% of the budget—to cover three months of salaries.
• 2019: Out of 133.1 trillion dinars, the Region’s net share was 9.9 trillion dinars. Of that amount, 5.31 trillion dinars was sent—3.99% of the budget—to cover six months of salaries.
• 2020: Under the Financial Management Law, out of 148 trillion dinars in expenditures (the Region’s share was 18.7 trillion dinars), only 2.18 trillion dinars was sent—1.48% of the budget—to cover three months of salaries.
• 2021: Out of 129.9 trillion dinars, the Region’s net share was 11.4 trillion dinars, but only 1.2 trillion dinars was sent—0.92% of the budget—to cover one month of salaries.
• 2022: Out of 122 trillion dinars in expenditures (the Region’s share was 15.4 trillion dinars), only 400 billion dinars was sent—0.33% of the budget—to cover one month of salaries.
• 2023: Out of 198.9 trillion dinars, the Region’s net share was 16.5 trillion dinars, but 4.69 trillion dinars was sent—2.36% of the budget—to cover five months of salaries.
• 2024: Out of 211.8 trillion dinars, the Region’s net share was 20.9 trillion dinars. Of that amount, 10 trillion dinars was sent—4.73% of the budget—to cover 11 months of salaries.
• 2025: Out of 211.8 trillion dinars, the Region’s net share was 20.9 trillion dinars, of which 9.59 trillion dinars was sent—4.53% of the budget—to cover 10 months of salaries.
The sovereign expenditure equation: An accounting trap against the Region’s share
Since 2015, the number of sovereign expenditure categories has increased from 10 to 100. Over the 12-year period, more than 65 trillion dinars was deducted from the Region’s share as sovereign expenditure—more than the entire 41 trillion dinars sent—without the Region or the Ministry of Peshmerga Affairs receiving any benefit from those sovereign expenditures or Iraq’s debts.
For example, in the three-year budget (2023-2025), sovereign expenditures amounted to 142.3 trillion dinars (23% of the total budget).
• Federal government method: Baghdad deducts 12.67% from total sovereign expenditures, amounting to 18.1 trillion dinars.
• Fair method: The Region’s contribution should be based on its total share before deductions (78.8 trillion) multiplied by 12.67%, amounting to 9.9 trillion dinars.
• Difference: Baghdad deducts nearly twice the amount from the Region’s share, causing a loss of 8.2 trillion dinars over the three years (2.7 trillion dinars per year).
Demographic violation and disregard for the 2024 census
According to the results of the 2024 general census conducted by the Federal Ministry of Planning, the population of the Kurdistan Region accounts for 14.14% of Iraq’s population. Despite this, the federal government also disregarded the census results in the draft 2027 budget and reduced the Region’s share to 12.70%. These figures indicate that the Region’s financial problem was not one of non-compliance, but rather a financial process aimed at reducing the financial entitlements of the people of Kurdistan to the lowest possible level.
Media and Information Department
