"The central Iraqi government does not allocate 17 percent of the budget to the Kurdish region, although this provision was embedded in the constitution. This is the reason for the emergence of a serious economic crisis," Mustafa Sefik said.
Sefik added that the Iraqi Kurdistan's 2-year-long fight against Daesh had a very negative impact on the local economy, which is also strained by the refugee crisis.
"Population of the Kurdish region is 5 million people. Together with refugees, this figure increased to 6.5 million. We have been facing serious costs due to the refugee influx. Even European countries experience great difficulties when only 50,000 or 100,000 refugees come to their territory," he stressed.
Daesh, outlawed in many countries including Russia, is operating mainly in Iraq and Syria.
