Iraq’s seven-month fiscal gap tops $22bn as investment outlays shrink
Finance Ministry data show spending outpaced revenue by more than 29 trillion dinars through July, while capital expenditure bore the brunt of the adjustment.
Iraq recorded a fiscal gap exceeding 29 trillion dinars, or about $22.4 billion, in the first seven months of 2026, according to Finance Ministry budget-execution figures reported by Rudaw. Revenue totaled 39.09 trillion dinars, including 30.35 trillion dinars from oil, while spending reached about 68.26 trillion dinars.
The government reduced total expenditure year on year, but investment spending fell far more sharply than recurrent costs. Capital expenditure dropped to roughly 2.8 trillion dinars, while salaries, pensions and social-protection commitments remained largely protected—highlighting the challenge of managing a budget still heavily dependent on oil income.
Original reporting: Rudaw English ↗