The proposal of the reduction of Kurdistan’s share in the central government’s budget is strongly refused and wanted that they will not stand still before such a measure.
Cutting back on Kurdistan’s region’s share of the budget of the central government is under discussion in Baghdad. Iraqi political blocs in the Parliament are claiming to call for the reduction of share of Kurdistan in parallel to the parliament’s voting on 2013 budget. Those calls were faced by Kurdistan Alliance members’ denial, qualifying such plan as a useless political game.
The Prime Minister of Kurdistan, Neshervan Barazani said that the budget of Kurdistan’s region is originally 11 % due to the expense deduction. They are not beggars and Baghdad will not be capable of reducing the budget since they are partners in the government and the parliament. In case, votes were counted and they were given a different amount from that they have needed, they will not simply stand for it.
No one can lessen Kurdistan’s cut; it is guaranteed by a constitutional and political contract dating back to Allawi’s government, granting the region 17 % of some profits; though Kurdistan gets today only 10 % and not even 17 %, Mahma Khalil, who is the deputy of Kurdistan Alliance expressed so.
Kurdistan’s cut of the budget can only be changed in light of a population census, whether by growing or decreasing it. The region’s share cannot be altered, if such a census is not conducted, stated the member of Kurdistan Alliance’s parliament, Mou’ayid Al Tayyib.
The economic experts in Kurdistan and Baghdad also had something to say about the severity of Kurdistan budget crisis. Some though, that this step had a really good influence on the economy of Kurdistan, while other opposed to them.
Reducing the share of Kurdistan to 13 % will naturally have an effect on the total amount as well as how it will be spent. The investment sector in the region will be affected to a great extent, meaning the projects in the execution time period will be stopped and operating projects will also be influenced; however the most affected sector will be that of services, confirmed the economic expert, Salah Eddine Kaku.
Hassan El Assad, who is an economic expert, said that the budget distribution should be completed according to population percentages. If Kurdistan was affected in a negative way by such a change, this does not imply that its share was decreased but that it has received its legal rights. He thinks this is a logical matter on the legislative, political, judicial and moral level. As a result, everyone must act in response in a positive manner on this matter.
The authorities of Kurdistan and Iraqi political blocs signed after 2003 a political contract stipulating that a 17 % cut of Iraq’s budget be given to Kurdistan’s region until a general census is undertaken, which is taken in account by experts as the solution to the budget crisis between Kurdistan and the center.
Source: [Al Sumaria]