Lack of management: expert slams Iraq's "runaway" spending
Shafaq News/ Iraq’s annual government spending has outpacedseveral stronger economies despite its continued reliance on oil and ongoingeconomic stagnation, according to Manar Al-Obaidi, head of the Iraq FutureFoundation.
Over the past decade, Iraq’s total revenues reached 1,028trillion Iraqi dinars ($784.4 million), with 92% derived from oil and only 8%from taxes, customs, and other sources.
Meanwhile, government spending during the same periodamounted to 1,007 trillion dinars ($768.4 million), along with unsettledadvances ranging between 100-150 trillion dinars ($114.5 billion), pushingtotal expenditures beyond 1,100 trillion dinars (approximately $1 trillion).
Despite its immense wealth, Iraq's $100 billion annualbudget surpasses the expenditures of several diversified economies. The UAEspends $65 billion annually, Malaysia $82 billion, and Singapore $77 billion,yet all three nations have expanded their economies to achieve a GDP of $500billion per year.
Al-Obaidi noted that unlike Iraq, these countries lack vastnatural resources and a large population, yet they have built thrivingeconomies with significantly lower budgets. Iraq, by contrast, remains trappedin an oil-dependent economy, chronic financial mismanagement, and worseningunemployment.
“The problem has never been a lack of resources but ratherhow they are managed,” Al-Obaidi stressed, warning that Iraq’s reliance on arentier economy will continue to deepen its financial challenges unless urgentreforms are implemented. He called for diversification, efficient spending, andan end to financial waste to ensure long-term stability.
He concluded that Iraq’s success hinges on “a stablegovernment to improve development management.” Removing any element of thatbalancing act, he warned, would lead to systemic failure.
