Iraq spent about 44.627 trillion dinars ($34.1 billion) on public-sector salaries and social welfare in the first half of 2026, according to Finance Ministry data. Employee compensation accounted for 30.769 trillion dinars ($23.5 billion), while social welfare spending totaled 13.858 trillion dinars ($10.6 billion). The combined outlay represented nearly 82 percent of total federal spending during the period.
The government's spending on wages and benefits exceeded its total first-half revenue by about 8.681 trillion dinars ($6.63 billion). Iraq's federal revenue for the period reached 35.946 trillion dinars ($27.4 billion), with oil generating roughly 79 percent of state income. Overall federal spending in the first half reached 54.673 trillion dinars ($41.7 billion).
The International Monetary Fund said in a 2026 technical report that Iraq remained vulnerable to fluctuations in oil prices. The IMF called for fiscal adjustments, including reductions in the public wage bill and increases in non-oil revenue sources.
