Iraq's 2024 financial revenues surpass 77 trillion dinars, reliance on oil remains high

Shafaq News/ Iraq’s financial revenues for the first seven months of 2024 have exceeded 77 trillion dinars (approximately $55 billion), according to a report released by the Ministry of Finance on Tuesday.

The data, which covers the period from January to July showed the total revenues was 77,475,502,239,546 dinars.

The report showed that oil revenues accounted for 89% of the total budget, totaling 69,055,827,984,000 dinars, while non-oil revenues contributed 8,317,883,512,000 dinars.

Advances for the period amounted to 15,664,477,820,559 dinars.

Economic expert Mohammed Al-Hassani attributed Iraq's economic difficulties to “the failure of previous regimes to transition to a developmental economy.” He stressed the need to invest oil wealth in diversifying the economy, creating productive job opportunities, and enhancing human development.

Al-Hassani also called for “legislative reforms to foster both local and foreign private-sector investment, including updates to tariff regulations, consumer protection laws, and anti-monopoly measures.”

Mudher Mohammad Saleh, the Financial and Economic Advisor to the Iraqi Prime Minister, explained that Iraq’s reliance on oil is a legacy of past wars, economic sanctions, and ongoing political conflicts. These factors have led to the misallocation of resources.

The continued dependence on oil exposes Iraq to global economic fluctuations, often resulting in the need for external or internal borrowing to address budget deficits.