The Iraqi Ministry of Finance has published back-to-back reports detailing revenue and expenditure for the first five months of 2025. According to the reports, Iraq’s total general revenue during this period surpassed 46.157 trillion dinars. Of this, oil revenues accounted for approximately 41.931 trillion dinars—representing 91% of the total—while non-oil revenues made up over 4.226 trillion dinars, or 9%.

On the expenditure side, total spending by the Ministry exceeded 46.979 trillion dinars. Operational expenses constituted the vast majority of this figure at 94%, while only 6% was allocated to investment expenditures. After subtracting total expenditures from total revenues, the reports indicate a budget deficit of around 822.146 billion dinars, or 3%.

A notable portion of the federal budget was allocated to the Kurdistan Regional Government (KRG). Between January and May 2025, the Ministry of Finance transferred more than 5.166 trillion dinars to the KRG. Of this amount, approximately 3.917 trillion dinars—roughly 75.8% of the KRG’s funding—was allocated to civil servant salaries. An additional 1.245 trillion dinars (24.1%) went toward social welfare payments, while a smaller portion—just under 4.8 billion dinars—was spent on grants, aid, and other miscellaneous expenses.

After deducting all expenditures from total revenue, expenses exceeded revenue by 3%, resulting in a deficit of approximately 822 billion and 146 million dinars.

The combined expenditures of the three presidencies totaled nearly 3 trillion, 793 billion, and 862 million dinars: the Council of Representatives spent over 214 billion and 710 million dinars, the Presidency spent more than 19 billion and 496 million dinars, and the Council of Ministers spent over 3 trillion, 532 billion, and 655 million dinars.

Detailed Breakdown

First: Funding Allocated to the Kurdistan Regional Government (KRG) in the First Five Months of 2025

According to the Ministry of Finance reports for the first five months of 2025, from January through May, the ministry allocated 5 trillion, 166 billion, 760 million, 773 thousand, and 383 dinars to the Kurdistan Regional Government, distributed as follows:

1. 3 trillion, 916 billion, 689 million, 567 thousand, and 289 dinars (75.8%) were allocated for employee salaries.
2. 4 billion, 767 million, and 852 thousand dinars (0.1%) were allocated for grants, aid, benefits, and other expenses.
3. 1 trillion, 245 billion, 303 million, and 353 thousand dinars (24.1%) were allocated for social welfare.

Second: General Revenue of the Ministry of Finance in the First Five Months of 2025

Iraq’s total general revenue from oil and non-oil sources during the first five months of 2025 reached 46 trillion, 157 billion, 110 million, 408 thousand, and 761 dinars. Of this:

• 41 trillion, 930 billion, 805 million, 332 thousand, and 802 dinars (91%) came from oil revenue.
• 4 trillion, 226 billion, 305 million, 75 thousand, and 959 dinars (9%) came from non-oil revenue.

Third: Total Expenditures (Operational and Investment) in the First Five Months of 2025

From January through May 2025, Iraq’s total expenditures for operational and investment spending amounted to 46 trillion, 979 billion, 256 million, 244 thousand, and 693 dinars. Of this:

• 43 trillion, 951 billion, 426 million, 645 thousand, and 150 dinars (94%) was allocated to operational expenditures.
• 3 trillion, 27 billion, 829 million, 599 thousand, and 543 dinars (6%) was allocated to investment expenditures.

Fourth: Breakdown of Investment Expenditures by Sector

In the first five months of 2025, total investment expenditures—covering agriculture, industry, transportation and communications, infrastructure and services, and education—amounted to 3 trillion, 27 billion, 829 million, 599 thousand, and 543 dinars (6% of total expenditures), distributed as follows:

1. Agriculture sector: 67 billion, 537 million, and 661 thousand dinars (2%).
2. Industry sector: 635 billion, 520 million, 755 thousand, and 622 dinars (21%).
3. Transportation and communications sector: 590 billion, 828 million, 392 thousand, and 444 dinars (20%).
4. Services and infrastructure sector: 1 trillion, 490 billion, 912 million, 43 thousand, and 916 dinars (49%).
5. Education sector: 243 billion, 30 million, 745 thousand, and 624 dinars (8%).

Fifth: Comparison of Total Revenue and Expenditure

During the first five months of 2025:

• Total expenditures (operational + investment): 46 trillion, 979 billion, 256 million, 244 thousand, and 693 dinars.
• Total general revenue (oil + non-oil): 46 trillion, 157 billion, 110 million, 408 thousand, and 761 dinars.

This resulted in a deficit of 822 billion, 145 million, 835 thousand, and 932 dinars, representing 3% of total general revenue.

Sixth: Expenditures of Iraq’s Three Presidencies

In the first five months of 2025, total spending by Iraq’s three presidencies (Council of Representatives, Presidency, and Council of Ministers) for operational and investment expenditures amounted to 3 trillion, 793 billion, 861 million, 971 thousand, and 758 dinars, distributed as follows:

1. Council of Representatives: 241 billion, 710 million, 33 thousand, and 638 dinars, of which only 165 thousand dinars was for investment expenditures.
2. Presidency: 19 billion, 496 million, and 81 thousand dinars, of which 57 million and 159 thousand dinars was for investment expenditures.
3. Council of Ministers: 3 trillion, 532 billion, 655 million, and 857 thousand dinars, of which 3 trillion, 191 billion, 204 million, 849 thousand, and 737 dinars (90%) was allocated to operational expenditures, and 341 billion, 451 million, 7 thousand, and 384 dinars (10%) was allocated to investment expenditures.