Iraq’s oil revenues stay strong in the federal budget despite a small decline. The Ministry of Finance confirmed that oil still makes up most of the country’s income. The latest figures show that oil continues to lead the economy.
According to the ministry’s recent financial report, total revenues in the first half of the year reached over 65 trillion dinars. Oil brought in more than 58 trillion dinars, while non-oil sources contributed around 7 trillion dinars. This shows that oil revenues stay strong and still dominate Iraq’s finances.
Moreover, the data highlights that oil’s share remains close to 89% of the total budget. Although the percentage dropped slightly, it still overshadows all other income streams. Non-oil revenues grew, but they remain far smaller in comparison.
In addition, the report detailed how the government spent its funds during this period. Employee salaries took the largest portion, reaching more than 28 trillion dinars. Social welfare payments followed with over 2 trillion dinars. Other current expenditures amounted to nearly 48 trillion dinars.
Furthermore, officials continue to focus on stabilizing the economy. They aim to strengthen non-oil income while keeping oil production steady. By doing this, they hope to balance the budget more effectively. However, the numbers make it clear that Iraq still relies heavily on oil revenues.
At the same time, economic experts stress the urgent need for diversification. They warn that global oil prices can change quickly and impact the national budget heavily. Yet for now, oil revenues stay strong, providing stability, supporting development projects, and securing most of Iraq’s financial health.
At the same time, economic experts stress the need for diversification. They warn that global oil prices can change quickly and impact the budget. Yet for now, oil revenues stay strong and secure most of Iraq’s financial stability.
This trend shows that while non-oil growth is happening, it will take time before it can match the oil sector. Until then, Iraq’s financial health will depend on global demand and export performance.