The US Defense Department's latest report on the situation in Iraq and Syria, also highlighted the Kurdish region's economic status. According to the report, the US State Department has reported that Kurdistan Regional Economy is concerned about the downfall in oil prices and the follow-up limitations following the outbreak of the coronavirus pandemic.
The Pentagon report also noted that before the fall of oil prices Kurdistan region had 300 to 350 million dollars income per month, but following the decline of oil prices to less than 30$, oil sales have decreased to $63 million in recent months.
Kurdistan Region officials have told the US State Department that the total salary paid to regional employees was around $750 million per month, of which the Iraqi government has paid nearly $384 million per month and that Kurdistan Region relies heavily on Baghdad's sent budget to pay workers.
Officials from the region have warned that the KRG government has suffered from a severe budget deficit and has had a budget deficit of $300 million per month since April. Erbil Officials said that among the ways to compensate it is to reduce the salaries of KRG employees and reconsider oil contracts with international companies.
Another way to compensate for the deficit in the Kurdistan region is borrowing loan from Turkey and Russia.
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