140 trillion dinars enter the Iraqi treasury in one year, 91% of which comes from oil

The Iraqi Ministry of Finance revealed on Saturday that the revenues in the 2024 federal budget exceeded 140 trillion dinars, confirming that oil contributed 91% of those revenues.

Shafaq News Agency reviewed the data and tables issued by the Ministry of Finance in May for the previous fiscal year's accounts, which showed that oil remains the primary source of revenue for Iraq's general budget, accounting for 91% of the total. This indicates that the rentier economy remains the foundation of the budget structure.

The tables indicate that total revenues in 2024 amounted to 140 trillion, 774 billion, 106 million, 157 thousand, and 464 dinars, while total expenditures amounted to 125 trillion, 214 billion, 440 million, 53 thousand, and 991 dinars.

According to the tables, oil revenues amounted to 127 trillion, 536 billion, 400 million, and 812 thousand dinars, representing 91% of the general budget, while non-oil revenues amounted to 13 trillion, 237 billion, 705 million, and 728 thousand dinars.

In this regard, economic expert Mohammed al-Hasani told Shafaq News Agency, "Iraq's reliance on oil for its public revenues indicates that the country is still suffering under the burden of a rentier economy, disguised unemployment, and other economic problems that constitute an obstacle to any progress."

He added, "Iraq needs major economic reforms focused on diversifying the economy, improving spending efficiency, and combating financial waste to ensure a sustainable economic future."

In March 2021, the Prime Minister's financial advisor, Mazhar Mohammed Salih, told Shafaq News Agency that the reasons for the economy remaining rentier are due to the wars and economic blockade imposed over the past decades, as well as the political conflicts Iraq is currently witnessing, which have led to the dispersion of economic resources.

The Iraqi state's continued reliance on oil as the sole source of its public budget exposes the country to the risk of global crises linked to oil markets. This forces it to cover its deficit through external or domestic borrowing each time. This indicates a weakness in the management of public funds and an inability to find alternative financing solutions.  link