The economic think tank Eco Iraq revealed in a new report that Iraq’s budget recorded a deficit of more than 12 trillion dinars in the first seven months of this year, despite a notable rise in oil revenues.

Spending Details

According to the report, Iraq’s total government expenditures by the end of July reached 84 trillion and 185 billion dinars, of which over 62 trillion dinars were operational expenses. Investment spending amounted to 13 trillion dinars, while oil licensing costs exceeded 8 trillion dinars.

Revenues: Oil and Non-Oil

Iraq’s total revenues for the first seven months of the year reached 72 trillion dinars, including 64 trillion and 940 billion dinars in oil revenues. Non-oil revenues amounted to 7 trillion dinars, representing about 10% of total income. This left a real fiscal deficit of approximately 12 trillion and 150 billion dinars.

Financial Transactions with the Kurdistan Region

The report also noted that during the same period, the Kurdistan Region transferred 559 billion and 300 million dinars to the federal treasury. In return, Baghdad sent 6 trillion and 769 billion dinars in salary payments to public sector employees in the Kurdistan Region.