The Impact of Fiscal policies on the Iraqi economy during the period(2004-2013)

Iraq belongs to the group of developing countries which are rich in natural resources; these resources form a foundation to the countries overall financial system and in turn shape the financial revenues resulting from the export of crude oil. The international energy market is clearly characterised by the volatility of the demand and price changes, this reflects directly the nature of the financial system, which should be designed in an alternative way to include in its composition a balanced budget and other tools to prevent budgets from Oscillating, thus leading to a sweeping crises. A country like Iraq needs far-reaching financial reforms; these reforms must be focusing on fiscal discipline and optimal allocation of resources by investing in restructuring the economy and re-establishing the real economy, which will produce new values that generate the taxes to support the budget financing. This may be achieved by abandoning the budgets that rely on the export of crude oil to generate direct cash to spend on salaries and benefits.