Iraq's revenues exceed 30 trillion IQD over 3 months
Shafaq News / The Ministry of Finance revealed, on Monday, that Iraqi revenues in the federal budget exceeded 30 trillion dinars over the past three months, confirming a decrease in oil's contribution to the budget to 89%.
According to data released by the ministry in May, accounting for January, February, and March of the current fiscal year, oil remains the primary revenue source, constituting 89% of Iraq's general budget.
Total revenues during the first three months amounted to 31 trillion, 187 billion, 625 million, and 445 thousand dinars, while total expenditures including advances reached 3 trillion, 678 billion, 245 million, and 419 thousand dinars.
Oil revenues amounted to 27 trillion, 675 billion, 924 million, and 540 thousand dinars, making up 89% of the general budget. Non-oil revenues totaled 3 trillion, 533 billion, 932 million, and 400 thousand dinars.
Economic expert Hilal Al-Tahhan commented to Shafaq News agency that "the high percentage of oil dependency indicates that Iraq's economy is still reliant on oil as its sole budgetary source." He noted that "the government has not utilized cash surpluses to revive industrial and agricultural projects, but rather for infrastructure like bridges and roads."
He pointed out that "neighboring countries have succeeded in developing their industrial and agricultural sectors, becoming sources of exports, while Iraq remains a consumer and importer from those nations."
Prime Minister's financial affairs advisor Mudhhir Mohammed Saleh stated in March 2021 that "Iraq's continued reliance on oil as its sole budget source stems from past wars, economic blockades, and ongoing political conflicts, resulting in economic resource depletion."
Iraq's ongoing reliance on oil as its primary revenue source leaves it vulnerable to global crises affecting oil prices, necessitating frequent external or domestic borrowing to cover deficits. This points to challenges in effectively managing state finances and finding alternative financing solutions.
