Deputy of the Patriotic Union of Kurdistan Raises Concerns Over Iraq’s Non-Oil Revenue Management
On March 11, 2025, the Deputy of the Patriotic Union of Kurdistan, Rashid, brought to light critical issues related to what he termed the “black file” of non-oil revenues in Iraq. He highlighted that these revenues, which parallel oil sales, do not substantially contribute to the state treasury.
Rashid emphasized that unlike many nations that rely on internal revenues, such as taxes and service fees to fund salaries and essential expenditures, Iraq’s situation is markedly different. He noted that non-oil revenues reaching the Ministry of Finance are significantly lower than their actual potential.
“This issue is one of the most pronounced sources of corruption in Iraq. The revenues are inaccurately recorded with figures that do not truly reflect their potential,” Rashid stated. He called for a reevaluation of revenue collection mechanisms and for ensuring that these earnings are accurately reported and delivered to the national treasury.
Moreover, Rashid warned that the ongoing reliance on oil as the primary income source is not a sustainable strategy, especially given the rising expenditures and salaries. He pointed out that significant sectors such as border crossings and government services possess the potential to yield substantial revenues equivalent to those generated from oil if managed transparently and effectively.
In his concluding remarks, Rashid urged the government to take decisive action to address what he described as one of the largest gateways to corruption in the country. He cautioned that neglecting this issue could perpetuate financial mismanagement and undermine the national economy.
Iraq’s non-oil revenue landscape has been a contentious issue, exposing persistent challenges related to administrative and financial corruption. Despite having various income sources—including taxes, customs duties, government service fees, and tourism revenues—these figures are often underrepresented in the national budget.
Experts argue that enhancing transparency and improving collection systems, coupled with robust anti-corruption measures, are vital strategies to rectify this situation. By doing so, Iraq could potentially finance a significant portion of its budget independently of oil revenues, paving the way for long-term economic stability.
