The Impact of The General Budget Deficit on The Stability of Financial Policy in The Iraqi Economic Environment

This research targeted the impact of the general budget deficit on the stability of fiscal policy in the Iraqi economic environment, in which these factors worked to consolidate the distorted pattern of public spending and the overall financial behavior of the Iraqi state, especially in financing the fiscal deficit in the budget through a combination of increased taxes or internal and external borrowing or through the sale of government securities to the central bank. In this research, the effects of financing methods on the money supply and the monetary base and their effects on the economic activity concluded that the financial policy tools are among the main factors influencing the determination of economic growth rates for any country in the world because of the ability of these tools to determine the financial position. And, this research recommended searching for other sources to finance the general budget, develop non-oil sectors, and enhance their contribution to the domestic product, in order to limit the reliance on oil exports as a major source of expenditures.