The Role of Financial Policy in Crowding Out the Private Sector in Iraq After 2003

• Post by: Muthanna mjdes
• October 26, 2022
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Ali Jaber Abdel Hussein ^*a      &      Hoda Abdel Hadi Obaid ^b

Al-Muthanna University / College of Administration and Economics/ Department of Financial and Banking Sciences.

Abstract                                

This research aims to explain the role of fiscal policy in crowding out the private sector in Iraq, as the fiscal policy has known its great role in influencing economic activity and then crowding out the private sector by the action of its three financial tools (public expenditures, public revenues, public debt). These enabled it to  occupy  a distinct and important position in the management of national economies. The problem of the study is that the fiscal policy that Iraq followed after 2003 was explosive and expansionary with unclear objectives, and the financial policy, which crowds out the private sector, is one of the biggest challenges and problems facing the Iraqi economy, especially when the government uses expenditures. The government is largely and excessively crowds out the private sector especially when increasing salaries and allowances for workers in the public government sector, which made the public sector suffers form inflated imbalances in the public budget and the spread of the phenomenon of unemployment.

DOI:10.52113/6/2021-11-3/205-214