Figures reveal non-oil revenue surge in 2024

Latest data from the Ministry of Finance reveals a remarkable surge in Iraq's non-oil revenues in 2024, marking a significant departure from historical trends.

Budget figures up to September 2024 indicate an almost threefold increase in non-oil revenue compared to the same period in 2023. Non-oil revenues, which have traditionally contributed only about 5% of total revenues, now represent 11%, despite a parallel increase in oil revenues during the same period.

While the exact mechanisms behind this substantial rise remain opaque, Iraq Horizons analysis suggests a convergence of several critical factors. Authorities have implemented higher taxes on various commodities and enhanced enforcement and collection processes. Patient fees at government hospitals increased from 3,000 IQD to 10,000 IQD per visit, contributing to the rise in service-related revenues. A significant uptick in stamp duty rates and improved administrative oversight have boosted related income. The rollout of digital payment facilities has reduced revenue leakages and facilitated faster collection of government fees. The issuance of government bonds in 2024 attracted considerable investment, contributing to non-oil revenue growth.