ABSTRACT
The political and economic transform ation that took place in Iraq after 2003 was characterized by many manifestations of confusion and contradiction , There were many factors hindering development trends, including political instability and the unstable security situation, Note that Iraq began to move towards building a new political and economic system after the political change , and under the rule of the CPA and successive governments until the present time , Iraq has witnessed increasing political instability , which had a significant impact on economic activity, especially on fiscal policy , as the fiscal policy, through its tools, can achieve economic stability because it is a method for managing the economy, therefore the role of fiscal policy in the economy after 2003 was not at the required level , because the country`s economy is a unilateral economy and its dependence on oil revenues, and the fluctuation of those revenues has a significant impact on the economic situation , through a continuos increase in public spending , the largest percentage is always operating expenses , ( such as increasing salaries, wages, grants and subsidies, as well as allocations card and the social protection network, all this at the expense of investment expenditures despite the rise in oil prices and the increase in revenues , however, it was directed at public spending and financial and admi nistrative corruption was the most serious challenge in the country , the fiscal policy must coordinate with other economic policies in order to influence the economy and be more effective through its political social and economic tracks as it constitutes the economic stability system in the country.
Ali Jaber AbduiHussein & Magda Pashi bedewi
Al-Muthanna University
