Boosting Non-Oil Revenues: Iraq’s Financial Strategy for 2025
In an effort to strengthen its finances, Iraq is focusing on increasing non-oil revenues through enhanced tax collection methods. This approach aims to diversify income sources and reduce the country’s heavy reliance on oil exports, which leaves the economy vulnerable to fluctuations in global oil prices.
The 2024 budget is based on an oil price of $70 per barrel, reflecting the ongoing uncertainty in the oil market. Prime Minister’s finance advisor Mazhar Saleh highlighted the need for tighter budgetary control in 2025 to address anticipated income deficits.
Projections suggest that non-oil revenues could reach $22 billion by 2025, a significant increase compared to the current seven to nine percent contribution to the government’s revenue. Better tax collection measures are expected to help recover an estimated $10 billion lost annually due to tax evasion and customs issues.
As Iraq prepares for potential financial challenges in 2025, it may need to reassess budget allocations, particularly for public sector wages and infrastructure projects. By focusing on boosting non-oil revenues, Iraq aims to create a more stable and sustainable financial future.
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