Business · Economy · 14 hrs ago
Iraq’s budget deficit jumps 346% as oil revenues fall
Iraq’s budget deficit rose 346% year on year to 36.26 trillion dinars, or $23.9 billion, in the first nine months of 2026.
Government revenues covered only 59.3% of spending, as oil revenues fell 50.8% from a year earlier.
Iraq depends heavily on crude exports, while employee pay and social welfare make up large parts of government spending.
That reliance had already left public finances vulnerable, and the Middle East conflict has disrupted oil production and shipments.
The World Bank expects Iraq’s economy to contract 12.4% this year, citing the effect on oil production and exports.
Iraq is trying to keep crude moving through routes that avoid the Strait of Hormuz.
September exports averaged about 2.6 million barrels a day through Sept.
21, including shipments routed outside the strait.
Iraq’s budget deficit rose 346 percent year on year to 36.26 trillion Iraqi dinars in the first nine months of 2026.
Oil revenues fell 50.8 percent from a year earlier, putting further pressure on public finances.
Government spending reached 89.08 trillion dinars, while revenues totaled 52.82 trillion dinars.
The figures come as conflict-related disruptions to oil production and shipments weigh on Iraq’s exports.
Current spending accounted for 96.2 percent of total expenditure.
- Who
- Iraq’s government, according to data from the Iraqi Ministry of Finance.
- What
- The budget deficit increased 346 percent year on year to 36.26 trillion Iraqi dinars.
- When
- In the first nine months of 2026.
- Where
- Iraq.
- Why
- Oil revenues fell 50.8 percent from a year earlier, with conflict-related disruptions to production and shipments adding pressure.
This story does not have two clearly opposing sides.
Iraq’s Ministry of Oil said average daily exports for September up to that date were approximately 2.6 million barrels.
Iraq recorded a budget deficit of 36.26 trillion dinars, with spending of 89.08 trillion dinars and revenues of 52.82 trillion dinars.
Arab News reported the deficit figures and the fall in oil revenues.
- Budget deficit
- 36.26 trillion Iraqi dinars ($23.9 billion)
- Year-on-year deficit increase
- 346 percent
- Total expenditure
- 89.08 trillion dinars
- Total revenues
- 52.82 trillion dinars
- Oil revenue decline
- 50.8 percent year on year
- Current expenditure share
- 96.2 percent of total spending