Shafaq News/ Iraq’s federal finance ministry announced on Wednesday thattotal revenues for the first nine months of 2024 exceeded 114 trillion dinars (about87B USD ), with non-oil revenues contributing just 11% to the budget.
The ministry’s December report indicates that oil remains thecornerstone of Iraq's economy, comprising 89% of the national budget.
According to the report, total revenues for the period reached 114.35trillion dinars, while advances and loans amounted to 15.8 trillion dinars. Oilrevenues were recorded at 101.94 trillion dinars, dwarfing non-oil revenues,which stood at 12.41 trillion dinars.
Economic expert Mohammed al-Hassani criticized the overreliance on oil,describing Iraq's economy as "rentier." Speaking to Shafaq News, hesaid, "Iraq has failed to implement effective customs tariffs that couldboost financial revenues. Efforts to support sectors like agriculture,industry, and tourism have been timid, with each contributing no more than 4%to the gross domestic product (GDP)."
Al-Hassani called for legislative reforms to attract local and foreignprivate investment, including enforcing consumer protection laws, anti-monopolyregulations, and customs tariffs.
Madhar Mohammed Saleh, the financial advisor to the prime minister,previously told Shafaq News in March 2021 that Iraq’s rentier economy stemsfrom decades of wars, economic sanctions, and ongoing political strife. Thesechallenges have fragmented the country’s economic resources and hindereddiversification.
Iraq’s heavy dependence on oil revenues makes its economy vulnerable toglobal market fluctuations. Crises in the oil market often force the governmentto cover budget deficits through domestic or foreign borrowing, highlightinginefficiencies in resource management and the lack of alternative fundingstrategies.