Iraq’s financial revenues exceed 65 trillion dinars during the first half of the year
Iraq’s financial revenues exceed 65 trillion dinars during the first half of the year
2024-08-07 02:15
Shafaq News/ The Ministry of Finance revealed on Tuesday that the size of Iraqi revenues in the federal budget during 6 months exceeded 65 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 August for the accounts of January, February, March, April, May and July for 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 for the country’s general budget.
The financial tables indicated that the total revenues for the first half of the current year amounted to 65 trillion, 921 billion, 901 million, 657 thousand, and 850 dinars, indicating that the total advances amounted to 15 trillion, 954 billion, 981 million, 637 thousand, and 865 dinars.
According to the financial tables, oil revenues amounted to 58 trillion, 803 billion, 897 million, and 993 thousand dinars, which constitutes 89% of the general budget, while non-oil revenues amounted to 7 trillion, 118 billion, 703 million, and 763 thousand dinars.
For his part, economic expert Mohammed Al-Hasani said in an interview with Shafaq News Agency that “without a real and serious activation of the private sector, and the introduction of deep structural reforms to the economy as a whole, including reducing the role of the state in its management and dominance over it, and ridding it of rentierism, leading to its modernization, activation, and linking it to the global economy, there is no quick solution on the horizon that will spare the country an inevitable economic collapse.”
He added, “If spending levels continue as they are without fundamental adjustments, then within a few years, at most, the state will not be able to meet its expenses, and will face the risk of bankruptcy, leading to economic collapse.”
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 thus indicates the inability to manage the state’s funds effectively, and the inability to find alternative financing solutions.
shafaq.com
