Iraq’s financial revenues exceed 54 trillion dinars in 5 months, and an expert warns
Iraq’s financial revenues exceed 54 trillion dinars in 5 months, and an expert warns
2024-07-14 02:36
Shafaq News/ The Ministry of Finance revealed on Sunday that the size of Iraqi revenues in the federal budget during 5 months exceeded 54 trillion dinars, confirming that the oil contribution to the budget remains around 89%.
Shafaq News Agency followed the data and tables issued by the Ministry of Finance in July for the accounts of January, February, March, April and May of the current fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 89%, indicating that the rentier economy is the basis of the country’s general budget.
The financial tables indicated that the total revenues for the first five months of the current year amounted to 54 trillion, 703 billion, 848 million, 603 thousand and 9 dinars, and that the total expenditures with advances amounted to 21 trillion, 701 billion, 453 million, and 601 thousand dinars.
According to the financial tables, oil revenues amounted to 48 trillion, 455 billion, 60 million, and 171 thousand dinars, which constitutes 89% of the general budget, while non-oil revenues amounted to 6 trillion, 788 billion, 431 million, and 731 thousand dinars.
For his part, economic expert Mohammed Al-Hasani said in an interview with Shafak News Agency, “The economy that depends entirely on oil is a country covered in a false cover and exposed economically and socially.”
He added that “the great neglect and continued marginalization of the role of other sectors, agricultural, industrial and service, will prevent the state from being able to transform from a rentier economy to a comprehensive economy,” indicating that “the state quickly collapses in the event of any global economic crisis.”
The “Iraq Al-Mustaqbal” Foundation for Economic Studies and Consultations announced on Thursday, July 11, that for the first time, the non-oil revenues of the Iraqi state recorded 11% of the total revenues, with oil revenues falling below the 90% barrier.
A report issued by the institution stated that non-oil revenues for the first five months of the current year amounted to 6.24 trillion Iraqi dinars, while oil revenues for the same period of the current year amounted to 48.4 trillion Iraqi dinars.
According to the report, tax revenues on income and wealth increased by 118%, while revenues from commodity taxes and production fees increased by 285%.
The institution’s report indicated that fee revenues increased by 50%, while oil revenues increased by 6.4%.
In March 2021, the Prime Minister’s advisor for financial affairs, Mazhar Muhammad Salih, confirmed in an interview with Shafaq News Agency that the reasons for the economy remaining rentier are due to the wars and the imposition of an economic blockade on Iraq during the past era and the political conflicts we are witnessing today, which led to the dispersion of economic resources.
The continued reliance of the Iraqi state on oil as the sole source of the general budget puts Iraq at risk from global crises that occur from time to time due to the impact of oil on them, which makes the country turn every time to cover the deficit through borrowing from abroad or domestically, which indicates the inability to manage the state’s funds effectively, and the inability to find alternative financing solutions.
shafaq.com
