Role of fiscal discipline to achieve the economic stability in Iraq for the period (2004-2016)

Abstract

The main objective of the public budget is to control public expenditure, and the budget in general suffers the deficit (especially in developed and developing countries) because the commitments are usually greater than the revenues achieved. The absence of limits on the main items of unrestricted expenditure will lead to increased commitments on the government Which will be reflected in higher tax revenues to GDP, ie, increasing the tax burden on those charged to cover the deficit. Total fiscal discipline can not be achieved when only public expenditure is controlled but discipline must be achieved on total revenue and debt This study highlights the state of financial indiscipline in Iraq and the increase in expansionary spending, which is reflected in economic stability. Financial discipline has been studied in the light of economic indicators of expenditure, revenues, budget deficit, public debt as well as financial position Governmental and international financial rules. It was noted that there was no discipline in public expenditure, which was reflected in economic stability.