Financial Sustainability in Iraq: Challenges and Opportunities

Abstract

In the recent period, interest in the topic of financial sustainability has increased among researchers and economists due to its future implications for implementing government policies and maintaining financial solvency.

The research problem focuses on the state's adoption of an expansionary financial policy, characterized by increased operational spending and reliance on oil revenue, which can lead to a contractionary financial policy during periods of reduced oil income. This approach hinders future sustainability and increases the size of public debt, posing a risk to financial stability. The study concludes that revenues from crude oil production continue to dominate the state's income, a trend expected to persist.