Baghdad and Erbil sign an agreement on full compliance with the provisions of the General Budget Law

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Baghdad and Erbil sign an agreement on full compliance with the provisions of the General Budget Law

Today, a reliable source from the government announced that Baghdad and Erbil have agreed to fully comply with the provisions of the General Budget Law. As part of the agreement, the regional government will now be responsible for delivering oil to the Federal Ministry of Oil.

According to a source who spoke to NRT Arabia, the federal governments and the Kurdistan Region have signed an agreement today committing to fully implement the provisions of the Federal General Budget Law that was passed by the House of Representatives and published in the Iraqi Gazette.

According to him, the agreement stipulates that the regional government will supply oil to the Federal Ministry of Oil as per Article (12 / second / c). Then, the Federal Ministry of Finance will compensate the regional government for the expenses incurred in producing and transporting the oil. The cost of a barrel will be calculated based on the average cost of the Federal Ministry of Oil, as mentioned in the law.

The agreement specifies that the regional government must deliver all non-oil revenues in full and deposit them into the Ministry of Finance’s account at the Central Bank, following the Financial Management Law. Additionally, the Federal Ministry of Finance receives 50% of the revenues from the region’s border crossings, which is consistent with other Iraqi border outlets as per Article 21/Second of the federal budget.

He mentioned that a committee would be formed by both parties to monitor non-oil revenues in the region as part of the agreement. The committee needs to complete its work within a month, following the budget law. Additionally, the Ministry of Finance in the Kurdistan region is funded based on Article (12/second/e) of the budget, as long as the regional government adheres to the budget law, including Article (12/second/a, b, c, d), as agreed upon through the mechanisms discussed above.