KRG Finance Ministry Says Baghdad Sent May Salary Funds Short by 80 Billion Dinars

The Kurdistan Regional Government’s Ministry of Finance and Economy said the Iraqi federal government sent an incomplete amount for May salaries, leaving a funding gap of more than 80 billion dinars that will be covered through borrowing so public employees can be paid on time before the upcoming holiday. The ministry said the shortfall was identified after the May salary list and April audit balance report were submitted to Iraq’s Ministry of Finance. To help ensure salaries are distributed before the holiday, the KRG Finance and Economy Ministry transferred 50 billion dinars, representing half of May non-oil revenue, to the Iraqi Federal Ministry of Finance’s account at the Central Bank’s Erbil branch on Monday morning, 25 May 2026. It described Baghdad’s request for half of May non-oil revenue when six days remained in the month as "an unprecedented situation in any accounting system in the world," but said it sent the money early anyway to leave no excuse. The ministry said 970 billion 741 million 514 thousand 914 dinars were required to finance May salaries, but by 15:00, the end of official working hours, the Federal Ministry of Finance had transferred only 890 billion 502 million dinars into the KRG Finance Ministry’s account at the Central Bank’s Erbil branch. That left Baghdad more than 80 billion dinars short of the total amount needed for May pay for KRG employees and salary earners. The ministry said banks, treasuries and relevant directorates had been instructed to speed up distribution despite the official holiday in Iraq and the Kurdistan Region. After the cash is withdrawn from the Central Bank’s Erbil branch, it will be sent to private banks, the "Hesabım" project, provinces and autonomous administrations. It said salary distribution will begin this afternoon based on the list to be published today, and payments will continue during the holiday days from 10:00 a.m. through cash disbursements and the "Hesabım" system.