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Kurdistan Region’s 2024 Budget: Record-High Revenues, Yet Salary Shortfalls Persist

Since the Erbil-Baghdad fiscal dispute began in 2014, 2024 marks the year in which Baghdad allocated the highest amount of funds to the Kurdistan Region, surpassing all previous years. The 2024 allocation reflects a 133.27% increase compared to the previous year, highlighting a significant shift in financial support.
Over the past 11 years, the KRG has never had as much revenue at its disposal as in 2024. The total revenue—including funds from Baghdad, oil sales, and domestic income—amounted to 16 trillion and 966 billion dinars. Excluding oil revenues, KRG’s total revenue stood at 14 trillion and 613 billion dinars.
Funds Sent from Baghdad to the Kurdistan Region (2014–2024)
Federal Transfers to Kurdistan Region (2014-2024)
• 2014: 2 trillion and 280 billion dinars
• 2015: 2 trillion and 476 billion dinars
• 2016: No funds received
• 2017: No funds received
• 2018: 3 trillion and 175 billion dinars
• 2019: 5 trillion and 439 billion dinars
• 2020: 1 trillion and 359 billion dinars
• 2021: 1 trillion and 200 billion dinars
• 2022: No funds received
• 2023: 4 trillion and 298 billion dinars
• 2024: 10 trillion and 26 billion dinars (a record-high allocation)
Between 2014 and 2023, Baghdad transferred a total of 29 trillion and 53 billion dinars to the Kurdistan Region. Notably, in 2024 alone, the funds sent amounted to 10 trillion and 26 billion dinars, representing more than one-third of the total funds allocated over the past decade.
Kurdistan Region’s Revenues in 2024
The KRG received revenue through four primary sources in 2024, according to official statistics:
KRG Revenue Sources (2024)
1. Funds from Baghdad
• The KRG Ministry of Finance reported receiving 10 trillion and 26 billion dinars from Baghdad for salary payments.
• However, the Iraqi Ministry of Finance reported a slightly higher figure of 10 trillion and 901 billion dinars allocated to the Kurdistan Region.
2. Domestic Revenue
• The KRG Ministry of Finance reported total domestic revenue of 4 trillion and 347 billion dinars (including cash, checks, and clearing transactions).
• This translates to an average of 362 billion dinars per month, though 652 billion dinars of this total came from checks and clearing, which may not be immediately liquid.
3. Coalition Support Funds
• The international coalition provides the Kurdistan Region with 20 billion dinars per month, previously allocated for joint brigade salaries but now provided as grants.
• The total coalition support for 2024 amounted to 240 billion dinars.
4. Oil Revenues
• Since March 25, 2023, the Kurdistan Region’s oil pipeline has been suspended.
• Currently, oil is sold directly to refineries or exported in limited quantities.
• According to Finance Minister Awat Sheikh Janab, oil is sold at an average price of $31.3 per barrel, with 55% of the revenue going to the government and 45% to oil companies (as the companies cover transport costs and sell directly).
• The region produces and sells 310,000–320,000 barrels of oil daily.
• In 2024, a total of 111.6 million barrels were sold at $31.3 per barrel, generating $3.493 billion (4 trillion and 610 billion dinars, assuming an exchange rate of 1 USD = 1,320 IQD).
• Of this revenue:
• 55% (equivalent to $1.921 billion or 2 trillion and 535 billion dinars) went to the government.
• 45% (equivalent to $1.571 billion or 2 trillion and 74 billion dinars) went to oil companies.
Total Kurdistan Region Revenues in 2024:
KRG Revenue Breakdown 2024
• Funds from Baghdad: 10 trillion and 26 billion dinars
• Domestic Revenue: 4 trillion and 347 billion dinars
• Coalition Funds: 240 billion dinars
• Government’s Share of Oil Revenue: 2 trillion and 353 billion dinars
Total KRG revenue for 2024: 16 trillion and 966 billion dinars
Total KRG revenue excluding oil: 14 trillion and 613 billion dinars
Salary Expenditures vs. Total Revenue
KRG Salary Expenditures vs Total Revenue (2024)
• Total salary expenditures for 11 months in 2024:
• 10 trillion and 26 billion dinars (from Baghdad)
• 960 billion dinars (from domestic revenue)
• Total: 10 trillion and 986 billion dinars
• Total KRG revenue in 2024: 16 trillion and 966 billion dinars
• Difference between total revenue and salary expenses:
• 16.966 trillion – 10.986 trillion = 5 trillion and 980 billion dinars surplus
Despite this surplus of nearly 6 trillion dinars, KRG only distributed 11 months’ worth of salaries.
Since the introduction of the Reform Bill in 2019, which the then newly formed cabinet of PM Masrour Barzani hailed as its cornerstone initiative that promised to curtail public sector spending, particularly in civil service payroll – the trajectory of salary expenditures tells a different story:
Annual Salary Expenditure (in Iraqi Dinars):
KRG Annual Salary Expenditure (2014-2024)
2014: 850 billion
2019: 892 billion
2020: 895 billion
2022: 913 billion
2023: 930 billion
2024: 1 trillion
From 2014 to 2024, salary expenditures increased from 850 billion to 1 trillion dinars, marking an increase of 150 billion dinars (18%). Notably, this rise occurred despite the implementation of the Reform Bill and the annual retirement of 5,000–6,000 employees.