The impact of the budget deficit on economic growth rates in Iraq

Abstract

The Iraqi economy suffers from a continuous structural fiscal deficit during the period (2005-2018), and this deficit has exacerbated with the conditions of the global economic recession and the decline in oil prices in world markets, which caused a decline in the financial resources available to the government to fulfill its financial obligations to produce basic services and alleviate the suffering Citizens to improve the performance of these services (water, electricity, health care, education), and in order for the government to achieve these services appropriately, it must use the capabilities of the private sector to produce these basic services as well as address structural imbalances in the Iraqi economy by changing the contribution of its main economic sectors to output In addition, economic reform policies such as tax reform can play a pivotal role in this, so this study tries to find ways and possible solutions to address this crisis by doing many Actions including, reforming the tax system, compressing operating expenditures, increasing investment spending, and Reducing financial and administrative corruption and saving a portion of oil revenues and investing them in the development of the oil industry, in order to diversify sources of income in the Iraqi economy and rid it of the structural imbalance caused by the increasing dependence on oil.