Urgent Need to Address Iraq’s Non-Oil Revenue Challenges
On Wednesday, March 12, 2025, Rashid, a deputy from the Patriotic Union of Kurdistan, raised critical issues concerning what he referred to as the "black file" in Iraq. This term highlights the significant discrepancies in the country’s non-oil revenues, which do not adequately contribute to the national treasury despite their potential.
Rashid pointed out that while most nations depend on internal revenues, such as taxes and service fees, to finance salaries and other expenses, Iraq’s situation appears starkly different. He emphasized that non-oil revenues reaching the Ministry of Finance are significantly lower than their actual potential, indicating a systemic issue in revenue collection and reporting.
He characterized this revenue discrepancy as one of the most substantial sources of corruption within the country. Rashid argued for a thorough reassessment of the mechanisms currently in place for revenue collection, advocating for measures that ensure accurate reporting and appropriate allocation to the state treasury.
Moreover, Rashid highlighted that continuous reliance on oil as the primary income source is unsustainable, notably in light of rising expenditures and salary commitments. He stressed that various sectors—including border crossings and government services—possess the capacity to generate substantial returns if managed transparently and efficiently.
In concluding his remarks, Rashid called for decisive governmental action regarding what he termed "one of the largest gates of corruption in the country." Ignoring these financial discrepancies, he warned, could lead to ongoing monetary waste and further weaken Iraq’s national economy.
The issue of non-oil revenues in Iraq remains a persistent challenge, underscoring the complexities of administrative and financial corruption in the country. Despite having multiple revenue sources, including taxes, customs duties, government service fees, and tourism revenues, the actual contribution of these sources to the national budget is minimal.
Economic experts suggest that improving transparency, enhancing the revenue collection process, and implementing robust anti-corruption strategies are critical solutions for rectifying these issues. By doing so, Iraq could potentially finance a significant portion of its budget independently of oil, paving the way for long-term economic stability.
