ERBIL, Kurdistan Region of Iraq – The Iraqi Council of Ministers on Thursday submitted a letter to the State Council asking the body to offer its opinion on the issue of the Kurdistan Region’s non-oil revenues, a senior source from the Iraqi cabinet told The New Region.

The New Region has learned that the State Council is expected to convene a meeting next week and discuss the issue, coming after the Iraqi cabinet rejected a proposal by the Kurdistan Regional Government (KRG), despite the proposal reportedly being viewed in a positive light by the Iraqi negotiating delegation.

The issue of the Kurdistan Region’s non-oil revenues has been a contentious matter between the Iraqi government and the KRG. Domestic revenues and the resumption of oil exports have formed the basis of a budget dispute that has seen Baghdad suspending funding for the Kurdistan Region’s budget share time and again for years.

Negotiating delegations from both sides have met multiple times to discuss the matter in recent months. The latest episode occurred in May, after Iraqi Finance Minister Taif Sami notified the KRG in a message that Erbil had burned through their budget for the remainder of 2025 and that Baghdad will no longer fund the Kurdistan Region’s civil servant salaries.

The State Council is an independent judicial body, specializing in administrative cases. Any decision the Council, which consists of several courts, makes must be adhered to by both Erbil and Baghdad.

Civil servants in the Region received their salaries for June in September, while July and August salaries have yet to be funded by the Iraqi government. The KRG has time and again reiterated that they have “more than fulfilled” their obligations relating to finding solutions with Iraqi authorities.