Shafaq News/ Iraq’s annual government spending has outpaced several stronger economies despite its continued reliance on oil and ongoing economic stagnation, according to Manar Al-Obaidi, head of the Iraq Future Foundation.

Over the past decade, Iraq’s total revenues reached 1,028 trillion Iraqi dinars ($784.4 million), with 92% derived from oil and only 8% from taxes, customs, and other sources.

Meanwhile, government spending during the same period amounted to 1,007 trillion dinars ($768.4 million), along with unsettled advances ranging between 100-150 trillion dinars ($114.5 billion), pushing total expenditures beyond 1,100 trillion dinars (approximately $1 trillion).

Despite its immense wealth, Iraq's $100 billion annual budget surpasses the expenditures of several diversified economies. The UAE spends $65 billion annually, Malaysia $82 billion, and Singapore $77 billion, yet all three nations have expanded their economies to achieve a GDP of $500 billion per year.

Al-Obaidi noted that unlike Iraq, these countries lack vast natural resources and a large population, yet they have built thriving economies with significantly lower budgets. Iraq, by contrast, remains trapped in an oil-dependent economy, chronic financial mismanagement, and worsening unemployment.

“The problem has never been a lack of resources but rather how they are managed,” Al-Obaidi stressed, warning that Iraq’s reliance on a rentier economy will continue to deepen its financial challenges unless urgent reforms are implemented. He called for diversification, efficient spending, and an end to financial waste to ensure long-term stability.

He concluded that Iraq’s success hinges on “a stable government to improve development management.” Removing any element of that balancing act, he warned, would lead to systemic failure.