The Iraqi Ministry of Finance issued an official explanation for the non-payment of May's salaries to employees in the Kurdistan Region, emphasizing in a statement: "The Kurdistan Regional Government has not adhered to its legal obligations regarding the transfer of oil and non-oil revenues to the federal government, and has also not implemented the nationalization of salaries." 

The Iraqi Ministry of Finance stated that, based on the provisions of the federal budget law for 2023, 2024, and 2025, as well as the ruling of the Federal Court, the Kurdistan Regional Government is obligated to hand over its oil and non-oil revenues to the federal government. 

In return, the Iraqi Ministry of Finance is committed to paying the full salaries of the Kurdistan Region's employees. The Iraqi Ministry of Finance announced that the federal government has adhered to all of its commitments, but the Kurdistan Regional Government has refused to implement the law and the ruling of the Federal Court and has not handed over its revenues. 

For this reason, the amount of money allocated to the Kurdistan Region has exceeded its actual share. Another section of the explanation stated: "The Kurdistan Regional Government is responsible for violating the provisions of the Federal Court ruling due to its failure to implement the nationalization of employee salaries." The Iraqi Ministry of Finance also stressed that the failure to deliver oil from the Kurdistan Region's fields to SOMO (State Oil Marketing Organization) has resulted in losses of several trillion dinars to the public treasury; a matter confirmed by joint reports from the Iraqi and Kurdistan Region's financial oversight bodies.