In a speech before the Eid al-Fitr holiday on Friday night, May 22, Masrour Barzani stated that at the beginning of his tenure, as the head of the ninth KRG cabinet, his efforts were aimed at dealing with problems with Baghdad and, parallel to these efforts, his government tried to prevent the region from regional dangers and damages as it is depended on oil revenue as a single source.

"The KRG, as it has done its utmost to solve problems with Baghdad and made recommendations to the central government, once again expresses its readiness to resolve all the differences between the two governments, in a way that protect the rights of the region as approved by the country's constitution. A KRG delegation has been sent to Baghdad three times and talks with the central government would continue until a just and legal result is achieved,” Barzani said.

The current crisis of the Kurdistan region has determined us further to continue with the strategy of creating numerous sources of income for the region which has forced us to continue with the basic reforms to resolve all the shortcomings that the region has been encountered in the past, the KRG PM also said.

Taking stock of the KRG’s accounts, he said that the only $30 million was deposited in the treasury from independent oil sales in April and internal revenues were just $60 million.

Before Baghdad cut budget transfers in April, Barzani said that Erbil received $383 million per month, which he said was inadequate to cover the KRG’s payroll.

Additionally, the government owes $27 billion in debt, a situation that he blamed on the failure of “previous Iraqi governments… to deliver the budget of the Kurdistan Region.”

“This nation cannot prosper by only paying salaries. We need a stronger foundation,” he said, explaining that 80 percent of revenues goes to salaries, fifteen percent to running the government, and five percent to investment.

“That is why we together – as citizens, government and political parties – need to make a consequential decision that even in better financial circumstances most of the revenues cannot be spent on public sector salaries. We must use a significant part of the budget for increasing public services and building a stronger economy,” he said, characterizing the decision as one between moving “forward or backward.”

The KRG prime minister did not outline how exactly his government planned to address these challenges from a technical point of view, but instead called on all the Region’s parties to unite behind its efforts.

“Of course, these reform measures must be comprehensive and apply to us all. No individual or faction must be allowed – for personal or political interests – to block reform,” he said.

“I am certain that with your help we will get through this difficult chapter, and that Kurdistan will move forward together toward prosperity. In that moment, I am certain that many will emerge to claim the success and achievements,” Barazni concluded.

Reporter’s code: 50101