Shafaq News- Baghdad

Iraq recorded a budget deficit of about 660 billion dinars ($510M) in the first quarter of 2026, despite steady oil inflows continuing to dominate fiscal accounts, the Ministry of Finance reported on Wednesday.

Figures covering January through March showed total revenues of 25.26 trillion dinars ($19.43B), slightly lower than total expenditures of 25.92 trillion dinars ($19.94B).

Oil income reached 21.22 trillion dinars ($16.32B), accounting for roughly 84% of total revenues, while non-oil revenues stood at 4.04 trillion dinars ($3.11B), representing the remaining 16%.

On the spending side, salaries and wages for public employees formed the largest component, totaling 15.32 trillion dinars ($11.78B) during the quarter. Social welfare programs followed, reaching 6.57 trillion dinars ($5.05B).

Additional expenditures included 688.36 billion dinars ($688M) for goods and supplies, 36.6 billion dinars ($28M) for services, and 11.38 billion dinars ($11M) for maintenance of state assets.

Other spending categories —including subsidies, grants, financial transfers, interest payments, and miscellaneous costs— amounted to 1.71 trillion dinars ($1.31B), while external obligations totaled 5.97 billion dinars ($6M).

Debt servicing reached 1.53 trillion dinars ($1.18B) over the three-month period.

Read more: Iraq’s economy in 2025: Oil dominance and delayed reforms