Measuring the impact of the budget deficit on Iraq's GDP for the duration (2004-2018)

Abstract

Crude oil is the main source of financing for Iraq's general budget, as the surplus or deficit is linked to the volatility of crude oil prices on international markets.  The importance of the research comes from the fact that the subject of the study is concerned with the study of the general budget and its relevance to GDP .

 The research aims to analyze the general budget in Iraq as well as the structure of GDP and the relative importance of the contribution of economic sectors to the gross domestic product. The inductive approach was used to analyze the findings of the research, which means that the quantitative method was also used in measuring the relationship between the balance sheet and GDP. The research limits for the period (2003-2018) were extended. The research also reached a set of conclusions and recommendations, including:

1- The Iraqi economy depends on oil revenues directly in the financing of the general budget, which means its economy is a unilateral economy. The Iraqi economy is directly affected by the fluctuation in crude oil prices on international markets due to its dependence on oil revenues.

2- Through the standard side it has been proven that there is a direct relationship between the deficit or the surplus in the general budget and the total bee output.

3- The need to diversify the Iraqi economy and not rely on a single resource to finance the general budget in order to avoid the structural problems and imbalances that occur as a result of dependence on a single economic resource