Iraq's financial revenues exceed 121 trillion IQD in 11 months
Shafaq News / The Ministry of Finance revealed on Wednesday that Iraq's revenues in the federal budget for the past 11 months exceeded 121 trillion dinars, confirming a rise in the contribution of oil to the budget to 93%.
According to the data and tables released by the Ministry of Finance in January of this year, covering the financial calculations for the past 11 months, indicating that oil continues to be the primary resource for Iraq's general budget, reaching 93%. This suggests that the rentier economy remains fundamental to the country's overall budget.
Financial tables indicated that total revenues until November of the previous fiscal year amounted to 121,214,907,087,408 dinars, excluding transfer revenues amounting to 1,438,122,744,000 dinars. It clarified that the total expenditures, including advances, reached 98,727,745,419,000 thousand dinars.
According to financial tables, oil revenues amounted to 112,665,001,402,000 dinars, constituting 93% of the general budget. Non-oil revenues reached 8,549,504,931,000 dinars.
Economic expert Mohammed Al-Hasani considered the "reduction in oil contribution to the general budget as a positive factor." He added that the reduction was not significant and resulted from the decline in global oil prices. He emphasized that oil prices are subject to global fluctuations.
He pointed out, "The Iraqi government must capitalize on the financial surplus in the budget by developing economic and agricultural sectors to reduce reliance on oil."
Earlier in March 2021, Prime Minister's Financial Affairs Advisor Mudhhir Mohammad Saleh stated that the persisting reliance on oil as the sole source for the general budget stems from wars, economic blockades, and current political conflicts, causing a dispersion of economic resources.
Continuing Iraq's dependence on oil as the sole source for the general budget puts the country at risk during global crises that periodically impact oil. This reliance forces Iraq to cover deficits through external or internal borrowing, indicating a lack of effective state financial management and an inability to find alternative funding solutions.
