Iraq recorded a financial deficit of nearly IQD 13 trillion during the first five months of this year, according to the Ministry of Finance. Official figures show that most government spending was directed toward salaries and operating costs, while investment expenditure remained limited.

Oil Continues to Dominate State Revenues

According to data released by the Iraqi Ministry of Finance, total government revenues during the first five months of the year reached IQD 33.747 trillion.

Oil revenues accounted for IQD 27.269 trillion, representing 84% of total revenues. Meanwhile, non-oil revenues totaled IQD 6.477 trillion, making up the remaining 16% of state income.

Spending Exceeds Revenue by Nearly IQD 13 Trillion

Total government expenditures during the same period reached IQD 46.697 trillion.

Of this amount, IQD 45.070 trillion was allocated to operating expenditures, including salaries and daily operational costs, accounting for 97.2% of total spending. By comparison, only IQD 1.626 trillion was allocated to investment projects, representing 2.8% of overall expenditures.

As a result, Iraq recorded a financial deficit of IQD 12.950 trillion, equivalent to 27.7% of total expenditures.

Kurdistan Region's Financial Allocations

The report showed that the federal government transferred IQD 5.158 trillion during the first five months of the year to cover salaries for public sector employees in the Kurdistan Region.

During the same period, the Kurdistan Region's Ministry of Finance deposited IQD 453.386 billion in cash into Iraq's financial account as the federal government's share of non-oil revenues.

The report also noted that in May, Baghdad deducted IQD 70 billion from the Kurdistan Region's salary allocations as the Region's non-oil revenue contribution.

Ministries Account for the Largest Expenditures

Among Iraq's ministries, the Ministry of Finance recorded the highest spending at IQD 11.103 trillion, followed by the Ministry of Interior with IQD 5.556 trillion, and the Ministry of Education with IQD 4.612 trillion.

Regarding the three presidencies, the Council of Ministers spent IQD 3.261 trillion, the Council of Representatives spent IQD 247 billion, and the Presidency of the Republic spent IQD 19 billion.