Iraq plans to increase non-oil revenues to 20 percent
Date
12/22/2024 2:03:51 AM
(MENAFN) Mazhar Mohammed Salih, the advisor to the Iraqi Prime Minister, confirmed on Saturday that there has been a notable shift in the contribution of non-oil revenues to the country’s budget. He indicated that the government's program aims to increase these revenues to 20 percent. According to Salih, this change reflects a broader strategy to reduce Iraq's dependency on oil revenues, which has been a key focus for the government.
Salih explained that there are two main approaches contributing to this growth in non-oil revenues. The first is the expected rise in the non-oil GDP growth rate, which is projected to reach 6 percent annually. This increase in growth is largely attributed to the development of productive activities in various non-oil sectors, including transportation, digital communications, housing, construction, agriculture, and industrial transformation.
The second approach is the enhancement of general budget resources beyond oil revenues, which has been driven by improved tax and customs collection systems. This progress has been facilitated by the introduction of digital operations and automation, alongside a more effective outreach to previously neglected tax sectors. This development is part of a broader effort to modernize and streamline revenue collection across the country.
Salih emphasized that these efforts are in line with the government’s broader economic reform programs, which aim to gradually increase the share of non-oil revenues. The goal is to raise this share to 20 percent over time, a significant improvement from the less than 10 percent contribution that non-oil revenues currently make to the federal budget.
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