Iraq News Now

Shafaq News/ The Iraqi Ministry of Finance announced, on Monday, that federal budget revenues for the 11 months from January to November 2024 surpassed 135 trillion dinars (approximately $102.4 billion).

Released in February 2025, the ministry's data reveals that oil revenues constituted roughly 88% of total income, underscoring the nation's continued reliance on a rentier economic model.

According to the figures, total revenue reached 135,322,716,694,603 dinars ($102,663,653,647), with advances amounting to 17,352,387,556,226 dinars ($13,165,873,031). Oil revenues were reported at 119,033,253,845,000 dinars ($90,322,761,549), while non-oil revenues contributed 16,289,462,848,000 dinars ($12,358,726,284).

Economic expert Mohammed Al-Hasani warned that “this heavy dependence on oil exposes Iraq to macroeconomic fluctuations, as the country's fortunes remain closely tied to volatile global oil prices,” emphasizing that “transitioning from a rentier economy to a diversified economic model would require substantial political will, as well as improvements in security and political stability.”

Al-Hasani noted that Iraq’s abundant natural resources could be better leveraged to broaden the production base, reduce oil reliance, and foster an environment conducive to attracting both domestic and foreign investment.

Prime Minister's Financial Advisor Mudhhir Mohammed Saleh, in an earlier interview with Shafaq News, attributed the persistence of the rentier economy to historical factors such as wars and economic sanctions, as well as ongoing political conflicts that have fragmented economic resources.

“Continued reliance on oil as the primary source of revenue not only leaves Iraq vulnerable to global crises affecting oil prices but also forces the country to rely on external or internal borrowing to cover budget deficits.” This dependency, Saleh argued, highlights a “critical need” for more effective management of state funds and the exploration of alternative financing solutions.