Baghdad, Iraq – Iraq’s annual government spending has surpassed that of several stronger economies, despite ongoing economic stagnation and heavy reliance on oil. Manar Al-Obaidi, head of the Iraq Future Foundation, highlighted these concerns while analyzing the country’s financial trajectory.
Over the past decade, Iraq’s total revenues reached 1,028 trillion Iraqi dinars ($784.4 billion), with 92% coming from oil. The remaining 8% came from taxes, customs, and other sources. However, government spending during the same period amounted to 1,007 trillion dinars ($768.4 billion). Additional unsettled advances, estimated between 100-150 trillion dinars ($114.5 billion), pushed total expenditures beyond 1,100 trillion dinars (approximately $1 trillion).
Despite its immense wealth, Iraq’s $100 billion annual budget is significantly higher than that of several well-developed economies. The UAE spends $65 billion annually, while Malaysia and Singapore allocate $82 billion and $77 billion, respectively. Yet, all three nations have expanded their economies, reaching a GDP of $500 billion per year.
Al-Obaidi pointed out that, unlike Iraq, these countries lack vast natural resources and large populations. However, they have built thriving economies with efficient management and diversified revenue streams. Iraq, on the other hand, remains trapped in an oil-dependent system, struggling with financial mismanagement and rising unemployment.
“The problem has never been a lack of resources but rather how they are managed,” Al-Obaidi stated. He warned that Iraq’s rentier economy would deepen financial instability unless urgent reforms were introduced. He urged the government to focus on economic diversification, efficient spending, and ending financial waste to ensure long-term stability.
He emphasized that Iraq’s future depends on “a stable government to improve development management.” Without a balanced approach, he cautioned, systemic failure would be inevitable.
