Shafaq News- Baghdad

Oil revenues accounted for 84%of Iraq’s 33.747 trillion Iraqi dinars ($25.65B) in federal income through theend of May 2026, according to budget execution data released by the FinanceMinistry.

The figures showed oilreceipts reached 27.270 trillion dinars ($20.73B), while non-oil revenuetotaled 6.477 trillion dinars ($4.92B), accounting for the remaining 16%.

: Iraq’s oil bottleneck: Abundance trapped by dependency

Government spending reached45.070 trillion dinars ($34.25B) over the same period, comprising 41.908trillion dinars ($31.85B) in current expenditure, 3.094 trillion dinars($2.35B) for debt servicing, and 13.6 billion dinars ($10.34M) in capitalexpenditure.

Employee compensation, accordingto the data, remained the largest spending item at 25.556 trillion dinars($19.42B), followed by 11.373 trillion dinars ($8.64B) for social welfare. Grants, subsidies, interest payments, and other allocations totaled 3.301trillion dinars ($2.51B), while goods accounted for 1.542 trillion dinars($1.17B) and services 108.3 billion dinars ($82.31M).

Investment spending stood at1.627 trillion dinars ($1.24B), including 915.9 billion dinars ($696.08M) forthe national investment program, 605.9 billion dinars ($460.48M) for regionaldevelopment projects, and 71.4 billion dinars ($54.26M) for petrodollar-fundedprojects. Buildings and public services received the largest share at 992.4billion dinars ($754.22M), followed by transport and communications with 269.5billion dinars ($204.82M), industry with 249 billion dinars ($189.24M),education with 99.9 billion dinars ($75.92M), and agriculture with 15.9 billiondinars ($12.08M).

Iraq, OPEC’s second-largestoil producer, relies on crude exports for about 90% of federal revenue, a dependencethat has come under growing pressure following disruptions to shipping throughthe Strait of Hormuz, which carries roughly one-fifth of global oil supplies. In late March, economic expert Nabil Al-Marsoumi estimated that the country hadcut production by about 2.9 million barrels per day, the largest reductionamong OPEC members.

: No exit but Hormuz: Iraq’s economic vulnerability exposed