The Opportunities of Achieving Financial Sustainability in the Conditions of the State’s General Budget Deficit

• Post by: Muthanna mjdes
• أكتوبر 23, 2022
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Um Al-Baneen Hamid Al-Jayashi    &   Aqeel Hamid Al-Helo

Al-Muthanna University/ College of Administration and Economics

Abstract

The topic of the research is concerned with financial sustainability and the paramount importance of its relationship to the public budget deficit, especially in light of crises and economic difficulties. The research problem has been crystallized around the economic factors affecting the phenomenon of the public budget deficit and the lack of financial sustainability opportunities in Iraq. To achieve the objectives of the research, descriptive statistical analysis has been  used to show the government’s ability to achieve financial sustainability, analyze the structure of the general budget in Iraq. The research has  found many reasons, the most important of which is the relationship of financial sustainability in Iraq to the price of oil. So, whenever the price of oil rises, the deficit in the public budget decreases and financial surpluses are achieved, and vice versa. Also, the Iraqi economy’s dependence of more than (90%) on oil revenues in financing the general budget and it neglects the rest of the other economic sectors, which made it (a one-sided economy). The researcher recommends the government to create a strategy aimed at diversifying and developing public revenue sources, especially taxes, and developing other important sectors such as agriculture.

DOI:10.52113/6/2021-11-4/218-232