A senior delegation from the Kurdistan Regional Government (KRG) is scheduled to visit Baghdad on Monday to address pressing budgetary concerns with the federal government. These talks follow increasing frustration in Erbil due to the delay in budget transfers, as reported by an anonymous source familiar with the matter.

The KRG delegation, to be led by Minister of Finance and Economy Awat Sheikh Janab, is expected to engage in discussions aimed at resolving the ongoing financial disputes. The delay in transferring funds is a source of particular concern for Erbil, which depends on these resources to meet its obligations, including paying civil servants in the region.

The root of this issue lies in an agreement between the KRG and Baghdad, stipulating the monthly transfer of 700 billion Iraqi dinars (approximately $538 million) to the Kurdistan Region. However, the federal government has fallen short of its commitments, according to KRG officials.

Prime Minister Masrour Barzani recently emphasized the importance of upholding the rights of the Region's teachers and asserted that these rights should no longer be violated. The KRG has also presented Baghdad with detailed payroll data to substantiate its claims.

The Iraqi Council of Ministers is expected to convene on Tuesday to address the matter and make a decision regarding the disbursement of salaries for the remaining months of the year.

Since the adoption of the budget in early June, KRG diplomats have expressed their dissatisfaction with its implementation. They allege that Baghdad has not properly allocated funds for the Kurdish region, instead providing allowances to Erbil to cover public salaries. The KRG has argued that the 500 billion dinars (over $384 million) received so far are insufficient to meet its salary obligations.

Iraq's state budget for this fiscal year is one of the largest in the country's history, with total expenditures set at 198.91 trillion Iraqi dinars (approximately $153 billion) and a deficit of over 64 trillion dinars (over $48 billion). The Kurdistan Region's share in the federal budget is stipulated at 12.67 percent, which amounts to more than $12 billion annually.

The management of oil and gas resources has remained a contentious issue between Erbil and Baghdad for over a decade, contributing to the suspension of the Region's share in previous federal budgets. This ongoing dispute underscores the complexity of the financial relationship between the Kurdistan Region and the federal government. The upcoming discussions in Baghdad will be pivotal in determining the resolution of these budgetary concerns.