Government financial advisor: Rising oil prices and exports boost coverage of operating expenses and avoid borrowing in Iraq
Government financial advisor: Rising oil prices and exports boost coverage of operating expenses and avoid borrowing in Iraq
11-10-2026
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Tuesday that the rise in oil prices and the increase in exported quantities are contributing to strengthening Iraq’s financial revenues and bringing it closer to the fiscal break-even point for the operational budget. He pointed out that the savings from fiscal and monetary policies are contributing to absorbing new job positions. Salih told the official news agency that “the fiscal break-even point depends on spending ceilings, and in light of the difficult circumstances and current geopolitical tensions, the fiscal break-even point for the operational budget represents a priority at the present stage.” He noted that “basic operational expenditures include salaries, wages, pensions, and social welfare, as well as payments to farmers and contractors, and expenses related to electricity maintenance, municipal services, and other government obligations.”
He explained that “oil revenues that cover this list of basic operating expenses bring public finances close to the break-even point, especially in light of the exceptional pressures facing the Iraqi economy,” noting that “increasing exported quantities in conjunction with rising prices leads to greater financial returns, which enhances the state’s ability to cover its obligations.”
He also stressed that “the financial savings achieved should be directed towards covering expenses according to government priorities, without resorting to borrowing,” explaining that “the general budget represents financial estimates, while oil revenues are recorded on a monthly basis, and may rise in some months and fall in others, so the average annual revenues should be considered and their ability to cover expenses during the fiscal year.”
He also noted that “achieving the necessary revenues to cover expenses, especially basic operational expenses, puts public finances in a more stable and flexible position.”
Regarding the new appointments, Saleh explained that “the previous financial and monetary policies and measures have contributed to achieving some savings that can help to accommodate the proposed appointments.”
He stressed that “Iraq is managing its public finances in light of a serious geopolitical crisis, given that about 90 percent of the general budget revenues depend on oil, which makes public finances vulnerable to the fluctuations of energy markets and regional developments.”
He pointed out that “the current stage represents a test of the country’s ability to manage its financial resources with minimal losses and achieve the highest returns, in order to ensure the continued fulfillment of government obligations and the maintenance of economic stability.”
burathanews.com
