Rentier-Seeking" Hits Iraq's Economy Despite Trillion-Dollar Revenues, 3 MAY

 Rentier-Seeking" Hits Iraq's Economy Despite Trillion-Dollar Revenues

Economy     Iraqi economy     Rentier economy     Oil revenues     Non-oil revenues

2024-04-29 01:37  Shafaq News/ The Federal Ministry of Finance revealed, on Monday, that the volume of Iraqi revenues in the budget exceeded 20 trillion dinars within two months, while confirming that the

 oil contribution to the budget had risen to 91%. Shafaq News Agency followed the

data and tables issued by the Ministry of Finance in April for the January and February accounts of the current fiscal year,

 which showed that oil is still the main resource for Iraq’s general budget, reaching 91%, which indicates that the rentier economy is the basis of the country’s general budget..

 The financial tables showed that the total revenues in January and February amounted to 20 trillion, 465 billion, 480 million, 278 thousand and 344 dinars.

 They also indicated that the total expenditures with advances amounted to two trillion, 752 billion, 731 million and 419 thousand dinars.

 According to the financial tables, oil revenues amounted to 18 trillion, 678 billion, 903 million, and 892 thousand dinars, which constitute 91% of the general budget, while non-oil revenues amounted to 1 trillion, 786 billion, 576 million, and 385 thousand dinars.

 In this regard, economic expert Muhammad Al-Hassani told Shafaq News Agency,

 “Iraq cannot get out of the cycle of rentier economy due to the lack of infrastructure for the industrial and agricultural economic sectors and the absence of a real investor,” adding that

 “the surplus funds in the general budget are not directed towards... Investment, but rather towards expenditure.

 The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed in March 2021, in an interview with Shafaq News Agency, that the

 reasons for the economy remaining rentier are due to wars and the imposition of the economic blockade on Iraq during the past era and the political conflicts we are witnessing today, which led to the dispersion of... for economic resources.

 The Iraqi state’s continued reliance on oil as the sole source of the general budget puts Iraq at risk from the global crises that occur from time to time because oil is affected by them,

 which makes the country tend every time to cover the deficit through borrowing from abroad or within, and   thus indicates the inability to Managing state funds effectively, and the inability to find alternative financing solutions.   https://shafaq.com/ar/اقتصـاد/الريعي-يضرب-اقتصاد-العراق-رغم-ال-يرادات-التريليونية