Iraq’s public finances showed a notable Iraq budget revenue shift during the first five months of 2026, according to newly released figures from the Ministry of Finance. Oil continued to generate the largest share of government income, but its contribution declined compared with the same period last year. Meanwhile, non-oil revenue sources expanded at a much faster pace, giving the federal budget greater diversity. The latest figures highlight changing trends in government income as Iraq continues efforts to strengthen revenue beyond crude exports.
Official data revealed that oil and mineral resources generated 26.946 trillion Iraqi dinars by the end of May 2026. During the same period in 2025, oil revenues reached 41.931 trillion dinars. This difference represents a decline of nearly 14.985 trillion dinars, equal to about 35.7%. As a result, oil’s share of total federal budget revenue fell from 91% last year to 84% this year.
Despite that decline, oil remained Iraq’s primary source of public funding. The government still relied heavily on energy exports to finance public services, salaries, and development projects. However, the latest figures also suggest that other revenue streams played a more meaningful role than before. This development reflects a gradual Iraq budget revenue shift toward broader income sources.
Non-oil revenue reached 6.477 trillion Iraqi dinars during the reporting period. In comparison, those revenues totaled 4.226 trillion dinars during the same months of 2025. The increase of 2.251 trillion dinars represented growth of approximately 53.3%. Consequently, non-oil income expanded its contribution to total budget revenues from 9% to 16%.
Several sectors supported this improvement. Income and wealth taxes increased from 574 billion dinars to 635.6 billion dinars. Commodity taxes and production fees also posted strong gains, climbing from 1.028 trillion dinars to 1.440 trillion dinars. Government service fees followed the same trend by rising from 434 billion dinars to 486.6 billion dinars.
Public sector profits delivered another important boost to government finances. The federal budget’s share of those profits increased from 660 billion dinars to 1.242 trillion dinars. That significant rise strengthened overall non-oil income and reduced part of the pressure created by lower petroleum earnings. Although these sources remain smaller than oil revenues, they continue to gain importance within Iraq’s fiscal structure.
Overall federal budget revenue reached 33.747 trillion Iraqi dinars by the end of May 2026. During the same period one year earlier, total revenue stood at 46.157 trillion dinars. The difference amounted to 12.410 trillion dinars, representing a decline of roughly 26.9%. Lower oil earnings accounted for most of that decrease, despite stronger growth across several domestic revenue categories.
The Ministry of Finance also reported that Iraq’s total oil revenue for 2026 reached 27.270 trillion Iraqi dinars. That amount included 2.090 trillion dinars transferred by the Kurdistan Region to the federal treasury after financial accounting settlements. Those transfers formed part of the country’s overall oil income during the reporting period.
The latest financial data underline a changing fiscal landscape. Oil remains the backbone of Iraq’s economy, yet stronger domestic revenues continue to expand their share of government income. If this trend continues, policymakers could strengthen financial stability by reducing dependence on a single revenue source. The latest Iraq budget revenue shift therefore marks an important development for Iraq’s long-term economic planning.