Hope rises for Baghdad-Erbil budget deal, but hurdles remain

Under a new agreement, Kurdistan could start receiving 200 billion Iraqi dinars per month.
KRG Prime Minister Masrour Barzani (right) receives Iraqi Prime Minister Mustafa al-Kadhimi (left) in Erbil on September 10, 2020. (Photo credit: Kurdistan Regional Government)

The leaders of Iraq's federal government and semi-autonomous Kurdistan Regional Government (KRG) have reached a notional agreement to implement a revenue-sharing deal that has been stalled since the ratification of the 2021 budget in April.

If both sides follow through, the agreement could unlock monthly federal budget payments of 200 billion Iraqi dinars ($138 million) to the KRG. But it remains unclear whether or when those transfers will actually happen, given the technical hurdles that might still need to be overcome before money is released, as well as staunch opposition from some political blocs.

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