The ongoing stalemate in Parliament continues as efforts to amend the general budget face mounting challenges ahead of tomorrow’s session, which is anticipated to be contentious.
Political leaders have indicated that any amendments to the public budget will require addressing the concerns raised by representatives from central and southern governorates. There are reports of U.S. pressure to amend Article 12 of the Budget Law, specifically regarding the financial share allocated to the Kurdistan region.
The proposed modifications to Article 12 involve calculating the price of a barrel of oil from the Kurdistan region at sixteen dollars, a figure subject to market fluctuations. This adjustment has emerged as a key point of contention.
The Finance Committee is banking on a successful vote for the new amendment, facilitated by discussions with the Minister of Finance. However, significant political discord remains regarding the compensation mechanisms the government will implement as part of this amendment.
Representative Hadi Al-Salami stated that the deputies from the central and southern regions have united, forming a cohesive front to advocate for equitable interests in the public budget revisions. He emphasized the importance of justice and fairness in how budgetary resources are distributed, arguing that it is unsustainable for the state to allocate billions to one region while others struggle with severe budget constraints detrimental to essential service projects.
Al-Salami further elucidated that budget amendments would not advance without establishing a fair distribution principle among all governorates, reiterating their stance against the current proposals as grounded in legitimacy and legal frameworks.
In a related development, Hussein Ali al-Karawi, head of the organizational body of the popular movement, highlighted that there is minimal pressure to pass the amendment to Article 12 of the Budget Law. He noted that the proposed amendment stipulates a cost of sixteen dollars per barrel for oil extraction in the Kurdistan region, with sales deductions impacting the region’s revenue.
Al-Karawi indicated that American stakeholders have communicated the necessity of passing the budget amendment during the upcoming session, amid ongoing resistance from representatives of the central and southern regions. He raised concerns that the House of Representatives risks compromising its independence by yielding to external pressures.
This amendment is said to align with the financial interests of American companies projected to benefit by approximately $5 billion from operations in the Kurdistan region.
It is important to note that the federal budget amendments have generated discontent among deputies from central and southern provinces, particularly in light of the substantial privileges afforded to the Kurdistan region, perceived as detrimental to the overall federal budget and other provinces’ funding.
The MPs from the central and southern regions have expressed their disappointment over the government’s reluctance to amend the budget law, particularly regarding Article 12 and related provisions, following a meeting held by the Prime Minister with parliamentary leaders.
In their statements, the MPs reiterated their support for facilitating the resumption of Iraqi oil exports from the Kurdistan region, while calling for significant amendments to the budget law to address existing deficits and ensure equitable financial distributions to all Iraqi provinces.
The rejection of what they termed “government and political tyranny” in budget negotiations has prompted the MPs to contemplate their next steps, with a meeting scheduled for tomorrow to evaluate the government’s and regional authorities’ responses to the proposed provisions.
The conflict surrounding the public budget law has sparked discussions across political and parliamentary platforms, particularly regarding Article 12, which delineates the oil export mechanisms from the Kurdistan region and corresponding financial returns.
Recently, the House of Representatives has added the federal budget law amendments to the agenda for the session scheduled for Sunday. The political landscape remains fraught with uncertainty, as various deputies express differing views on government accountability for budgetary changes.
Disputes between Baghdad and Erbil escalated recently when a proposed amendment deviated from the initial agreement reached by the Parliamentary Finance Committee and the respective governments, particularly concerning Article 12 related to oil exports.
Kurdistan Regional Government spokesman Bishua Hawrami declared on January 23 that these budget proposals were made unilaterally and without consultation, asserting their full rejection of the current procedural amendments and calling for federal endorsement of the budget draft.
In response, the spokesperson for the federal government, Al-Awadi, dismissed claims of obstruction in the amendment process, urging the Kurdistan Regional Government to comply with the budget law’s provisions regarding fiscal revenue transfers to the federal government, as mandated by law and court rulings.
As recent sessions highlighted escalating tensions, a quorum was disrupted when deputies exited the chamber during a vote on a specific provision of the federal budget law.
The fiscal relationship between the federal government and the Kurdistan region remains one of the most complex issues, straddling legal and political dimensions. While ongoing efforts seek resolution through legislative reforms, compliance from the region continues to be pivotal in ensuring employee rights and fostering stability between both parties.
This ongoing friction has reportedly heightened over the past few days, characterized by conflicting statements regarding salary payments for public sector workers in the Kurdistan region, with allegations of inadequate funding from Baghdad preventing timely disbursal.
On January 15, the United States articulated its support for expedited passage of the federal budget by the Iraqi parliament. U.S. State Department spokesperson Matthew Miller emphasized the importance of achieving a permanent budget agreement conducive to sustainable oil production in the Kurdistan region.
Despite these interventions, the current year’s budget remains unimplemented, raising concerns among economic experts about the ramifications of instability in fiscal management and its implications for investment and political trust.
Efforts to resolve outstanding issues between Baghdad and Erbil regarding budgetary allocations, funding shares, salary disbursements for the Kurdistan region’s workforce, and various disputed territories have persisted over the past decade, with little headway achieved thus far.
