Iraq’s Financial Revenues Surpass 65 Trillion Dinars, Oil Dominates at 95%

The Ministry of Finance revealed on Sunday that Iraq’s financial revenues in the federal budget exceeded 65 trillion dinars over seven months, confirming a rise in the oil contribution to the budget to 95%. However, an economic expert believes that non-oil revenues “will not improve.”
Shafaq News Agency examined data and tables released by the Ministry of Finance for the current fiscal year from January to July. These figures indicate that oil still constitutes the main source of Iraq’s general budget, accounting for 95%, highlighting that Iraq’s economy heavily relies on oil revenues.
According to financial tables, total revenues until July amounted to 65,195,003,735,974 dinars after excluding transfer revenues of 1,995,073,713,000 dinars. Total expenditures, including advances, 52,916,562,761,000 dinars.
Based on the financial data, oil revenues reached 62,259,118,923,534 dinars, constituting 95% of the general budget. Meanwhile, non-oil revenues reached 2,935,884,812,439 dinars.
Economic expert Mohammed Al-Hasani commented on this, stating, “Non-oil revenues will not improve or increase as long as Iraq lacks local industrial and agricultural production.” He emphasized that “the Iraqi economy is rentier, relying on taxes and customs for non-oil revenues.”
He pointed out that “the successive governments in Iraq have not directed the surplus of oil revenues resulting from rising oil prices towards industrial and agricultural development but relied on imports to meet local needs,” confirming that “Iraq has become dependent on neighboring countries.”
Earlier in March 2021, Prime Minister’s Financial Affairs Advisor Mudhhir Mohammed Saleh stated that the persistence of Iraq’s economy relying solely on oil is due to wars, economic blockades during the past era, and the ongoing political conflicts, which have led to the dispersion of economic resources.
Iraq’s continued dependence on oil as the sole source for the general budget puts the country at risk of global crises affecting oil prices, forcing it to cover deficits through foreign or domestic borrowing. This highlights the inability to effectively manage the state’s finances and the failure to find alternative financing solutions.

About Parvin Faghfouri Azar

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