Iraq’s Ministry of Finance announced that the country’s financial revenues in the first seven months of 2024 exceeded 77 trillion Iraqi dinars, with oil accounting for 89 percent of the total revenue. This reliance on oil as the main funding source shows that Iraq’s economy is still heavily dependent on the rentier system.
During this period, Iraq earned 69.05 trillion dinars from oil exports and 8.31 trillion dinars from non-oil revenues. This financial situation has been exacerbated by past conflicts and economic embargoes, leading to a continued reliance on oil for budgetary needs.
With global crises impacting oil prices, Iraq’s economy remains vulnerable due to its heavy reliance on oil revenue. The lack of diversification in funding sources has led to an ongoing cycle of borrowing to cover budget shortfalls.
The current financial advisor to the Prime Minister, Mazhar Saleh, has highlighted the need for economic reform to reduce dependence on oil revenue and strengthen Iraq’s financial stability.
In conclusion, Iraq’s financial situation highlights the need for economic diversification and proper financial management to ensure long-term stability.
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