BUDGET 2025: TOWARDS ECONOMIC DEVELOPMENT AND INCREASING NON-OIL REVENUES IN IRAQ, 18 NOV

 BUDGET 2025: TOWARDS ECONOMIC DEVELOPMENT AND INCREASING NON-OIL REVENUES IN IRAQ

The Iraqi government has begun preparing the 2025 budget schedules, amid aspirations that this budget will be a focus for achieving sustainable development and increasing non-oil revenues, in addition to enhancing the country’s economic stability. The head of the Finance Committee in Parliament, Atwan Al-Atwani, confirmed in a statement to Al-Sabah newspaper that efforts are directed towards completing the infrastructure for next year’s budget, as the requirements for reviewing the budget have been determined, noting that the government hopes to complete some important items to meet national needs. 

 Budget Goals: Comprehensive Development and Economic Stability

Al-Atwani explained that the main objectives of the 2025 budget include achieving economic development and increasing non-oil revenues, through developing means to enhance economic stability. With the operating budget increasingly dependent on available resources, it has become necessary to search for additional resources to boost the economy, where the focus has been on rationalizing consumption as a basic measure to achieve this goal.

Digital transformation and its role in increasing revenues

Al-Atwani pointed out the importance of digital transformation as a means of enhancing non-oil revenues, as he believes that this transformation constitutes an essential structure to support the national economy. This goal will be included in the 2025 budget by expanding the scope of digital transformation in various sectors, which will contribute to increasing revenues and developing financial management methods.

Challenges and financial deficit

Despite the ambitious trends, the Chairman of the Finance Committee indicated that the budget deficit may remain the same compared to 2024, given the government’s commitment to repaying its external debts and directing its resources towards investment projects. These commitments have been reflected in the budget through the financing of development projects and the entry of many of them into service, which has allowed for a significant improvement in economic stability.

Supporting projects in the governorates

In support of the governorates, the government has begun financing projects worth up to 400 billion Iraqi dinars, and is preparing to launch a new financing batch that matches the needs of the ministries and governorates. Al-Atwani stressed that the concerned ministries and governorates will bear the responsibility of paying their financial obligations towards private sector companies, which will enhance the role of the private sector in driving the wheel of development.