Kurdistan’s Budget Battle with Baghdad Explained

In the Kurdistan Region, tens of thousands of public employees, including teachers, healthcare workers, and civil servants, are once again without pay.

On June 19, the Federal Supreme Court was expected to rule on whether Baghdad’s Ministry of Finance must resume sending funds to cover these salaries. But the session was postponed due to a lack of quorum, reportedly caused by mass resignations among judges, some allegedly under threat.

This explainer breaks down the roots of the crisis: Kurdistan’s constitutional right to a share of Iraq’s federal budget, Baghdad’s allegations of overspending, and recent tensions triggered by Erbil’s gas deals with U.S. companies.

Kurdish officials view the salary freeze as political retaliation and a violation of federal principles, while Baghdad cites budgetary limits.