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15 trillion Iraqi dinars would be the Kurdish share of Iraqi budget
05 Feb 2015
The Kurdistan Region’s share of Iraq’s 119.5 trillion dinar budget for this year amounts to 14.8 trillion dinars, based on the 17 percent share to which Erbil is constitutionally entitled.
Following the approval of the budget bill by the Iraqi parliament on Thursday, the Defense Ministry in Baghdad must send salaries, weapons, and military equipment to the Peshmerga forces. This will be based on the size of the Kurdistan Region’s population, not the 17 percent share.
Masoud Haydar, a member of the Iraqi parliament’s Finance Committee, said that the Peshmerga should receive 1.2 trillion dinars. The amount was agreed by Erbil and Baghdad, but it is not included in the budget bill. In addition, Kurdistan has also secured one trillion dinars from the sovereign budget.
Haydar said that Erbil is also entitled to a share of every oil barrel sold.
“In the Petro-Dollars clause, $1 dollar for each sold barrel of oil will go to the province that produced the oil, except for Basra, which will get $1.5 for each barrel. This clause applies to the Kurdistan Region,” he said.
In return, the Kurdistan Regional Government has to export 50 million barrels of oil in the next three months and 200 million in total in the current year. This export includes oil from the Kirkuk fields. This is to say that, at the end of the current year, the region will get $91 million from the Petro-Dollar fund, in return for exporting 250,000 barrels a day. These payments will be made to the Kurdistan Region on a monthly basis. If Iraqi oil revenues increase by the end of the year, the Petro-Dollar fund will also increase to $2 for each barrel. This will mean the total of the Kurdistan Region’s budget will be 17.1 trillion Iraqi dinars. The budget is expected to be sent to the region after the Iraqi president’s approval.
According to an agreement with Baghdad, the KRG will have to pass 250,000 barrels per day (bpd) from the Kurdistan Region’s three provinces and 300,000 bdp from Kirkuk oil fields to Iraq’s State Oil Marketing Organization (SOMO). In return, Baghdad will send the KRG’s budget according to the Budget Law. If either side fails to abide by the agreement, the other will have the right to discontinue its commitment to the deal.
As for the Provincial Development Budget, Sulaimani province receives the largest share among the Kurdistan provinces. That is because Sulamiani has the largest population of the Kurdish provinces.
Regarding the new province of Halabja, Haydar said: “The biggest achievement in terms of the budget was securing approval for Halabja as a province. The budget share for Halabja will be allocated from the Kurdistan region’s 17 percent share. This is despite the 2 billion Iraqi dinars that have been allocated for reconstruction of the province.”
Regarding the refugees in Kurdistan and the allocated budget for them, Haydar said that, “Any family that has a refugee card will be paid 400,000 Iraqi dinars as a salary; 125 billion Iraqi dinars have been allocated as an emergency fund for refugees.”
The budget bill also allocates 2.1 trillion Iraqi dinars to the Shiite militia. One trillion of the budget comes from the Presidential Budget and the other half comes from the functioning budget.
The Shiite militia is active in all of the Iraqi provinces, apart from the Kurdistan Region. In the disputed areas, the militia is present, but any operation carried out by the militia must be in coordination with the Peshmerga forces.
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05 Feb 2015
The Kurdistan Region’s share of Iraq’s 119.5 trillion dinar budget for this year amounts to 14.8 trillion dinars, based on the 17 percent share to which Erbil is constitutionally entitled.
Following the approval of the budget bill by the Iraqi parliament on Thursday, the Defense Ministry in Baghdad must send salaries, weapons, and military equipment to the Peshmerga forces. This will be based on the size of the Kurdistan Region’s population, not the 17 percent share.
Masoud Haydar, a member of the Iraqi parliament’s Finance Committee, said that the Peshmerga should receive 1.2 trillion dinars. The amount was agreed by Erbil and Baghdad, but it is not included in the budget bill. In addition, Kurdistan has also secured one trillion dinars from the sovereign budget.
Haydar said that Erbil is also entitled to a share of every oil barrel sold.
“In the Petro-Dollars clause, $1 dollar for each sold barrel of oil will go to the province that produced the oil, except for Basra, which will get $1.5 for each barrel. This clause applies to the Kurdistan Region,” he said.
In return, the Kurdistan Regional Government has to export 50 million barrels of oil in the next three months and 200 million in total in the current year. This export includes oil from the Kirkuk fields. This is to say that, at the end of the current year, the region will get $91 million from the Petro-Dollar fund, in return for exporting 250,000 barrels a day. These payments will be made to the Kurdistan Region on a monthly basis. If Iraqi oil revenues increase by the end of the year, the Petro-Dollar fund will also increase to $2 for each barrel. This will mean the total of the Kurdistan Region’s budget will be 17.1 trillion Iraqi dinars. The budget is expected to be sent to the region after the Iraqi president’s approval.
According to an agreement with Baghdad, the KRG will have to pass 250,000 barrels per day (bpd) from the Kurdistan Region’s three provinces and 300,000 bdp from Kirkuk oil fields to Iraq’s State Oil Marketing Organization (SOMO). In return, Baghdad will send the KRG’s budget according to the Budget Law. If either side fails to abide by the agreement, the other will have the right to discontinue its commitment to the deal.
As for the Provincial Development Budget, Sulaimani province receives the largest share among the Kurdistan provinces. That is because Sulamiani has the largest population of the Kurdish provinces.
Regarding the new province of Halabja, Haydar said: “The biggest achievement in terms of the budget was securing approval for Halabja as a province. The budget share for Halabja will be allocated from the Kurdistan region’s 17 percent share. This is despite the 2 billion Iraqi dinars that have been allocated for reconstruction of the province.”
Regarding the refugees in Kurdistan and the allocated budget for them, Haydar said that, “Any family that has a refugee card will be paid 400,000 Iraqi dinars as a salary; 125 billion Iraqi dinars have been allocated as an emergency fund for refugees.”
The budget bill also allocates 2.1 trillion Iraqi dinars to the Shiite militia. One trillion of the budget comes from the Presidential Budget and the other half comes from the functioning budget.
The Shiite militia is active in all of the Iraqi provinces, apart from the Kurdistan Region. In the disputed areas, the militia is present, but any operation carried out by the militia must be in coordination with the Peshmerga forces.
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