Iraqi Government Unveils Plan for Non-Oil Revenue Growth, Private Sector Boost

The Prime Minister's Financial Advisor, Mazhar Mohammed Saleh, revealed on Monday details of a government plan aimed at significantly increasing the contribution of non-oil revenues to the state budget and enhancing the private sector's role in the national economy over the next ten years. The plan targets raising non-oil revenues to 46% of total public revenues, compared to less than 10% currently. This is coupled with boosting the private sector's contribution to 54% of the Gross Domestic Product (GDP) from its current level of approximately 37% over the coming decade. Saleh clarified that the government's financial policy during this period aims to achieve economic stability and sustainable development by diversifying revenue sources and pivotally strengthening the private sector's role. He indicated that this policy is founded on a core planning path that prioritizes economic stability and sustainable development, affirming the government's continued implementation of its tools and measures through the federal budget. This will be achieved by restructuring public expenditures and revenues, thereby contributing to the restructuring of the real economy at the macro level. Saleh added that the financial trajectory over the next ten years seeks to achieve these two main objectives: first, diversifying revenue sources to reach the specified percentage, and second, increasing the private sector's contribution. He explained that the financial plan stems from a firm conviction that diversifying public revenues and reducing the burdens imposed by a singular rentier economy go hand in hand with an increased private sector share in the GDP. This is because an expanded private sector role enhances national economic diversity and boosts investment, production, and employment opportunities. The advisor pointed out that the principles and mechanisms for financial planning for the country's future are based on gradually enhancing the added value produced by the private sector. This, in turn, supports the diversification of the GDP structure and promotes sustainable economic growth. Saleh elaborated that activating productive sectors, expanding the investment base, and implementing strategic projects with direct impact on local development represent fundamental pillars for creating sustainable job opportunities and reducing unemployment rates to single digits, reaching approximately 3% of the total workforce, down from its current level of 13%. He concluded by affirming that the economic philosophy underpinning sustainable development and achieving stability in the country is based on an effective partnership between the state and the market, ensuring the integration of both public and private roles in building a diversified economy more capable of facing future challenges.