Al-Khuzai Warned a Severe Economic Crisis in Iraq due to a Sharp Decline in State Revenues

On Monday, a member of the Iraqi parliamentary committee for the implementation of the government program, Anaam al-Khuzaie has indicated the rates of a sharp decline in the state’s oil and non-oil revenues. He also warned about an expected severe economic crisis in Iraq. Khuzai said, “The fourth axis of which focused on maximizing non-oil revenues, such as taxes and customs. And monitoring public debt to ensure that it remains within the limits of financial sustainability is contrary to the government program. But, the government didn’t actually seek to enhance non-oil revenues”. She also announced a downfall in oil prices from nearly 80 U.S dollars to 50 U.S dollars during the last couple of months.

Severe Economic Crisis in Iraq due to a Sharp Decline in State Revenues

Al-Khuzaie added in his statement that the customs agreements between Iraq and neighboring countries to incur the public budget heavy losses, especially with the granting of these countries customs exemptions and reduced entry attributes, it, unfortunately, declined Non-oil revenues significantly. She also pointed out that the official figures indicate that non-oil revenues dropped from 8.6 trillion Iraqi dinars until the beginning of September 2018 to approximately 33 trillion Iraqi dinars until the beginning of September2019. She pointed out that this was accompanied by another serious decline in total investment expenditures from 16.3 to 11.2 trillion Iraqi dinars for the same above mentioned period.

It clearly indicates a weak investment effort for this year. In spite of what was monitored by the general budget because of its decline by 32% this year compared to the same period last year. Al-Khuzaie also said that the justification for the government’s performance is the downfall in oil revenues. Iraq has achieved at least 84 trillion Iraqi dinars since the beginning of 2018 until August of the same year. She pointed out that this year has witnessed a sharp decline in oil revenues, as Oil revenues didn’t exceed 53 trillion Iraqi dinars only. The oil revenues have declined by 37% during the current year since the end of 2018. She said the above-mentioned figures indicate very important financial facts, the first decline in oil revenues and weak expectations about the recovery of oil prices, and the second decline in non-oil revenues due to the policies of exemptions.

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