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

Baghdad-INA
A government source revealed on Thursday, that Baghdad and Erbil signed an agreement regarding full compliance with the provisions of the General Budget Law, while indicating that the agreement includes the regional government taking over the delivery of oil to the Federal Ministry of Oil.

The source told the Iraqi News Agency (INA), " the federal government and the Kurdistan region signed today Thursday, an agreement regarding full compliance to implementing the provisions of the Federal General Budget Law, which was legislated by the Parliament and published in the Iraqi Gazette."

The source added, "The agreement provides for the implementation of what was stated in Article 12 / second / c, whereby the regional government undertakes to handover the oil to the Federal Ministry of Oil, then the Federal Ministry of Finance undertakes to compensate the regional government for the costs of producing and transporting the oil actually received from the region, and the cost of a barrel is calculated according to the average cost the Federal Ministry of Oil, as stated in the text of the law."

It continued, "The agreement also stipulated that the regional government  hand over all non-oil revenues 100 percent, and deposit them in the account of the Ministry of Finance at the Central Bank in accordance with the Financial Management Law," noting that "the Federal Ministry of Finance receives 50 percent of the revenues of the border crossings of the region, similar to the Iraqi governorates others that have border crossings and receive such a percentage according to Article 21/Second, of the federal budget."

The source explained, "The agreement included the formation of a committee from both parties to follow up on non-oil revenues in the region, provided that it finishes its work within a month in accordance with the budget law," explaining that "the Ministry of Finance in the Kurdistan region is funded according to Article 12 / second / e, of the budget, provided that the regional government continues to implement the budget law, especially Article 12 / second / a, b, c, d, according to the mechanisms agreed upon above."