Oil fuels 91% of Iraq’s federal revenue

Shafaq News/ Iraq’s federal revenues for 2024 have exceeded 140 trillion dinars, with oil generating more than 91% of the total, the Ministry of Finance reported on Saturday.

Official data shows total income reached 140.774 trillion dinars ($99.576B), while expenditures hit 125.214 trillion dinars ($88.582B). Oil revenue contributed 127.536 trillion dinars ($90.192B), highlighting Iraq’s continued reliance on crude exports. Non-oil income totaled just 13.237 trillion dinars ($9.361B).

Economist Mohammed al-Hasani criticized the imbalance, arguing Iraq has “failed” to build a diverse economic base. “This overdependence makes the country highly vulnerable to global oil fluctuations. Without reforms to boost efficiency and develop alternative sectors, fiscal instability will remain,” he told Shafaq News.

Iraq’s rentier economy, shaped by decades of war, sanctions, and weak governance, has faced long-standing scrutiny. In 2021, Prime Ministerial adviser Mudhhir Mohammed Saleh attributed the structural flaws to decades of disrupted planning and mismanaged resources.

Analysts continue to warn that unless Iraq broadens its revenue sources, it will remain exposed to budget crises during oil slumps, often turning to debt to cover spending gaps.