Iraq’s Ministry of Finance announced on Saturday that the country collected more than 82.37 trillion dinars (about $62.9 billion) in revenues between January and August 2025.
According to official data, oil income made up the vast majority of those earnings — about 73.82 trillion dinars ($56.5 billion), or roughly 90% of total revenues. Non-oil revenues reached 8.55 trillion dinars ($6.5 billion) during the same period.
How the Money Was Spent
Government spending for those eight months totaled 73.65 trillion dinars ($56.2 billion).
Here’s how that money was used:
- 44 trillion dinars ($33.6 billion) went to public sector salaries
- 12.56 trillion dinars ($9.6 billion) covered retirees’ pensions
- 3.71 trillion dinars ($2.8 billion) supported social welfare programs
The figures show that most of Iraq’s spending continues to go toward wages and social payments — areas that keep the economy moving but leave little room for development or investment.
Heavy Reliance on Oil Still a Risk
Earlier, Mudhhir Mohammed Saleh, the financial adviser to Prime Minister Mohammed Shia Al-Sudani, warned that Iraq’s dependence on oil revenues makes the economy vulnerable to global price swings.
He explained that when oil prices drop, budget shortfalls quickly appear — often forcing the government to borrow money, either from domestic banks or foreign lenders, just to cover expenses.
The Bigger Picture
With oil providing nearly all of Iraq’s income, experts continue to call for economic diversification — boosting non-oil industries, trade, and private investment.
Until then, Iraq’s financial health will remain closely tied to the global oil market — a risk the country knows all too well.
