The ministry’s statistics, which covered January through April, showed that 88.9 percent of the country’s total revenues – nearly 25 trillion dinars - came from the oil sector, but oil revenues still decreased in comparison to last year.
Operational expenses also accounted for 93.6 percent of total expenditures for that period, while investment costs only covered 6.4 percent.
The Kurdistan Region’s expenditures – over four trillion dinars – saw an increase of 891 billion, and all went for covering civil servants’ salaries.
On Tuesday, the finance ministry reported a deficit of nearly 900 billion dinars (about $690 million) in the first three months of the year, a 12 percent increase in comparison to the first three months of last year.
Nabil al-Marsoumi, an energy and economics professor at the University of Basra, attributed the difference to a decrease in oil prices.
Iraq passed its highly-contentious budget bill for the years 2023, 2024, and 2025 in June 2023, which includes a record $152 billion in spending. The massive expenditure sparked concerns of instability should oil prices drop below the $70 per barrel threshold set in the bill.
Prime Minister Mohammed Shia’ al-Sudani said at the time that the record-high budget was aimed at addressing pressing social needs, enhancing infrastructure development, and fostering economic progress.