Iraq's oil revenue share in budget falls to 84%
Shafaq News- Baghdad
Oil revenues accounted for 84% of Iraq's federal budget income during the first five months of 2026, down from 91% in the same period of 2025, while the share of non-oil revenues increased to 16%, according to official data released by the Ministry of Finance on Monday.
The ministry's report, reviewed by Shafaq News, showed that oil and mineral resource revenues totaled 26.946 trillion Iraqi dinars (about $20.6 billion) through the end of May 2026, compared with 41.931 trillion dinars (about $32.0 billion) during the same period last year. The decline amounted to 14.985 trillion dinars (about $11.4 billion), or approximately 35.7%.
By contrast, non-oil revenues rose to 6.477 trillion dinars (about $4.95 billion) from 4.226 trillion dinars (about $3.23 billion) in the corresponding period of 2025, an increase of 2.251 trillion dinars (about $1.72 billion), or roughly 53.3%. As a result, their contribution to total budget revenues increased from 9% to 16%.
The data showed improvements across most non-oil revenue sources. Taxes on income and wealth increased from 574 billion dinars (about $438 million) to 635.6 billion dinars (about $485 million). Commodity taxes and production fees rose from 1.028 trillion dinars (about $785 million) to 1.440 trillion dinars (about $1.10 billion), while government fees increased from 434 billion dinars (about $331 million) to 486.6 billion dinars (about $372 million). The federal budget's share of public sector profits also climbed from 660 billion dinars (about $504 million) to 1.242 trillion dinars (about $949 million).
Overall, Iraq's federal budget revenues reached 33.747 trillion dinars (about $25.8 billion) by the end of May 2026, compared with 46.157 trillion dinars (about $35.2 billion) during the same period in 2025. The decline of 12.410 trillion dinars (about $9.47 billion) represents a decrease of approximately 26.9%.
“Iraq's total oil revenues for 2026 reached 27.270 trillion dinars (about $20.8 billion), including 2.090 trillion dinars (about $1.60 billion) in oil revenue transferred by the Kurdistan Region to the federal treasury following accounting settlements,” the report added.
The comparison between the two years shows that the decline in overall budget revenues was driven primarily by lower oil income, while stronger non-oil revenue growth increased its contribution to the federal budget. Oil revenues nevertheless remained the country's main source of public financing.
