Challenges of the Iraqi economy in light of the financial deficit

Abstract

The importance of fiscal policy is growing due to its pivotal role in achieving economic and social growth and stability. The research focused on several aspects focusing on correcting the fiscal policy through several steps, some of which included correcting the structure of public spending by raising the percentage of investment spending from the total public spending at the expense of reducing current expenditures, which have increased dangerously since 2003. Oil revenues form the backbone of fiscal policy In Iraq, this matter made it face a bed of economic risks related to changes in oil prices (their decline) as well as the decline in global demand for oil, In addition to the decline of the productive apparatus of other economic sectors, and this is what affected Iraq of clear economic paralysis in the structural structure of all its sectors, as non-oil sectors contributed in percentages not exceeding (10%), which is a modest percentage and does not fit the development effort required to develop infrastructure and stimulate investment and economic growth In the country