MP: Iraq’s budget is hostage to oil, and cutting spending is necessary to reduce risks.
MP: Iraq’s budget is hostage to oil, and cutting spending is necessary to reduce risks.
7-27-2025
Al-Maalouma / Baghdad..
Member of the Parliamentary Finance Committee, Mustafa Al-Karaawi, stated on Sunday that the continued reliance of the general budget on oil revenues almost entirely keeps the national economy vulnerable to global fluctuations, stressing that reducing operating spending has become an urgent requirement to avoid recurring financial crises.
Al-Karaawi said in a statement to Al-Maalouma, “The structure of the Iraqi budget remains fragile due to its strong dependence on oil, as it constitutes between 89 and 90 percent of total revenues, which makes the country vulnerable to global market fluctuations and their direct impact on citizens’ livelihoods.”
He explained that “the 2024 budget recorded a large deficit exceeding 19 trillion dinars, and this deficit is likely to continue in next year’s budget unless a serious review of spending items is conducted and real economic reforms are adopted.”
He stressed that “addressing the financial imbalance begins with reducing unnecessary operating spending, in conjunction with strengthening the private sector and increasing non-oil resources,” noting that “the current phase requires a comprehensive reform strategy that sets realistic solutions and reduces the Iraqi economy’s dependence on oil revenues alone.”
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