Non-oil revenues surge in Iraq, oil dependency falls below 90%

Shafaq News/ On Thursday, the Iraq Future Foundation for economic studies and consultations announced that, for the first time, non-oil revenues of the Iraqi state recorded 11% of total revenues, with oil revenues falling below the 90% barrier.

Today's Foundation report showed non-oil revenues for the first five months of 2024 totaled 6.24 trillion Iraqi dinars (4,773,541,344.00 USD), with oil revenues reaching 48.4 trillion Iraqi dinars (37,025,545,040.00 USD)."

According to the report, tax revenues on income and wealth have increased by 118%, and revenues from commodity taxes and production fees have increased by 285%, noting that fee revenues increased by 50%, while oil revenues increased by 6.4%.

The oil industry in Iraq is considered a fundamental pillar of the economy. Iraq's sole reliance on oil for its general budget poses a significant risk during global crises, as fluctuations in oil prices compel the country to repeatedly cover deficits through foreign or domestic borrowing. This highlights ineffective fiscal management and a failure to find alternative financing solutions.

Iraq, OPEC's second-largest producer, relies on oil exports for more than 92% of its state budget.