The impact of fiscal discipline on economic growth: An applied study on the Iraqi economy for the period (2004-2024)

Abstract

This study aims to determine the nature of the relationship between fiscal discipline indicators and economic growth indicators in Iraq for the period from 2004 to 2014. This study relied on quantitative analysis using data obtained from official sources such as the Central Bank, the Ministry of Finance, and the Central Statistical Organization in Iraq. This analysis will focus on assessing the extent of fiscal discipline's contribution to economic growth in achieving economic stability. The results showed a relationship between fiscal patterns and economic growth, but it is unstable as it depends heavily on fluctuations in oil revenues. Public debt also showed a limited impact on economic growth. The study concludes that there is a major challenge facing the Iraqi economy due to the lack of fiscal discipline. This study recommends that the government adopt fiscal policies based on rules that enhance governance, improve spending efficiency, and work on long-term fiscal policy planning, which will support economic growth.