IDEAS home Printed from https://ideas.repec.org/a/scm/ejafbu/v13y2020i23p1-9.html
   My bibliography  Save this article

The Impact Of Financial Policy Tools In Reducing The Deficit Of The General Budget

Author

Listed:
  • LATFE ALHUSSEINAWI

    (Sumer University of Thiqar, 64011, Iraq)

Abstract

In the context of the economic crisis caused by the global oil prices drop and the ISIS terrorist attacks, the Iraqi government adopted a financial and fiscal policy between 2015 and 2018 aiming to reduce the federal public deficit. The present paper analyses the role and importance of this policy. The Iraqi state budget relied mostly on the income from crude oil sales. Thus, the oil price drop had significantly impacted the income, as well as public expenditures. Moreover, the military spending increased due to the need to counterattack the ISIS offensive, causing imbalances augmented by the policies and procedures imposed by the International Monetary Fund (IMF). Our goal is to identify methods of increasing the general state revenues, while complying with the financial rules imposed by the IMF. It is also important to identify the commitment level of the government to enforce the IMF policies and procedures imposed in order to reduce the state budget deficit. The federal laws adopted by the Iraqi government for the years 2015, 2016, 2017 and 2018 were taken under certain conditions, which differ from those adopted in developed countries. The paper shows that the external debt of the Iraqi government is not present in the balance sheet issued and also not recorded by the Treasury. Instead, the amount is based on statistically public debt and on the Federal Financial Bureau statement number 10505 from 22/5/2017. The recommendations highlighted through the present study were reached after analyzing the Iraqi government’s statements. Mainly, our proposal is further preparation of economic studies in order to ensure that the revenues and expenditures estimation is close to reality. Another recommendation is to continuously document the results of past implementations, highlighting the current situation versus future expected developments. It is also important to publish the external debt and to record it in the Treasury accounting records.

Suggested Citation

  • Latfe Alhusseinawi, 2020. "The Impact Of Financial Policy Tools In Reducing The Deficit Of The General Budget," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 13(23), pages 1-9, June.
  • Handle: RePEc:scm:ejafbu:v:13:y:2020:i:23:p:1-9
    as

    Download full text from publisher

    File URL: http://www.accounting-management.ro/getpdf.php?paperid=23_2
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hillman,Arye L., 2019. "Public Finance and Public Policy," Cambridge Books, Cambridge University Press, number 9781107136311, January.
    2. Ben S. Bernanke, 2020. "The New Tools of Monetary Policy," American Economic Review, American Economic Association, vol. 110(4), pages 943-983, April.
    3. Oronde Small & Leanora Brown & Gustavo Canavire‐Bacarreza, 2020. "The Fiscal Policy Response To Public Debt In Developing Countries," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 155-165, January.
    4. ., 2019. "Public finance, monetary policy and banking supervision," Chapters, in: Islamic Finance, chapter 7, pages 180-206, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Nannestad, 2021. "Salem with and without witches, and also Geneva and Berlin," Public Choice, Springer, vol. 186(3), pages 229-239, March.
    2. Martin Mosler & Niklas Potrafke & Markus Reischmann, 2019. "How to Handle the Fiscal Crisis in Greece: Empirical Evidence Based on a Survey of Economic Experts," Fiscal Studies, John Wiley & Sons, vol. 40(3), pages 375-399, September.
    3. Francesco Casalena, 2024. "Back to normal? Assessing the Effects of the Federal Reserve's Quantitative Tightening," IHEID Working Papers 14-2024, Economics Section, The Graduate Institute of International Studies.
    4. Athanasios Orphanides, 2023. "The Forward Guidance Trap," IMES Discussion Paper Series 23-E-06, Institute for Monetary and Economic Studies, Bank of Japan.
    5. Gruber, Jonathan & Kanninen, Ohto & Ravaska, Terhi, 2022. "Relabeling, retirement and regret," Journal of Public Economics, Elsevier, vol. 211(C).
    6. Benchimol, Jonathan & Bounader, Lahcen, 2023. "Optimal monetary policy under bounded rationality," Journal of Financial Stability, Elsevier, vol. 67(C).
    7. Pablo Guerrón-Quintana & Alexey Khazanov & Molin Zhong, 2023. "Financial and Macroeconomic Data Through the Lens of a Nonlinear Dynamic Factor Model," Finance and Economics Discussion Series 2023-027, Board of Governors of the Federal Reserve System (U.S.).
    8. Athanasios Orphanides, 2021. "The Power of Central Bank Balance Sheets," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 39, pages 35-54, November.
    9. Bhar, Ramaprasad & Malliaris, A.G., 2021. "Modeling U.S. monetary policy during the global financial crisis and lessons for Covid-19," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 15-33.
    10. Tayler, William J. & Zilberman, Roy, 2024. "Unconventional policies in state-dependent liquidity traps," Journal of Economic Dynamics and Control, Elsevier, vol. 168(C).
    11. Takuji Kawamoto & Jouchi Nakajima & Tomoaki Mikami, 2021. "Supplementary Paper Series for the "Assessment" (3): Inflation-Overshooting Commitment:An Analysis Using a Macroeconomic Model," Bank of Japan Working Paper Series 21-E-9, Bank of Japan.
    12. Peterson K. Ozili, 2024. "Economic Policy for Sustainable Development: Role of Monetary Policy, Fiscal Policy and Regulatory Policy," Circular Economy and Sustainability, Springer, vol. 4(4), pages 2625-2656, December.
    13. Naz, Farah & Tanveer, Arifa & Karim, Sitara & Dowling, Michael, 2024. "The decoupling dilemma: Examining economic growth and carbon emissions in emerging economic blocs," Energy Economics, Elsevier, vol. 138(C).
    14. John Freebairn, 2022. "Economic Problems with Subsidies for Electric Vehicles," Economic Papers, The Economic Society of Australia, vol. 41(4), pages 360-368, December.
    15. Altavilla, Carlo & Gürkaynak, Refet S. & Quaedvlieg, Rogier, 2024. "Macro and micro of external finance premium and monetary policy transmission," Journal of Monetary Economics, Elsevier, vol. 147(S).
    16. Shunsuke Haba & Kimihiko Izawa & Yui Kishaba & Yusuke Takahashi & Shunichi Yoneyama, 2025. "Measuring Policy Effects since the Introduction of Quantitative and Qualitative Monetary Easing (QQE): An Analysis Using the Macroeconomic Model Q-JEM," Bank of Japan Working Paper Series 25-E-2, Bank of Japan.
    17. Bhattarai, Keshab & Mallick, Sushanta K. & Yang, Bo, 2021. "Are global spillovers complementary or competitive? Need for international policy coordination," Journal of International Money and Finance, Elsevier, vol. 110(C).
    18. Patrick A. McLaughlin & Adam C. Smith & Russell S. Sobel, 2019. "Bootleggers, Baptists, and the risks of rent seeking," Constitutional Political Economy, Springer, vol. 30(2), pages 211-234, June.
    19. Thomas Mayer & Gunther Schnabl, 2023. "How to escape from the debt trap: Lessons from the past," The World Economy, Wiley Blackwell, vol. 46(4), pages 991-1016, April.
    20. Kábrt, Tomáš & Brůna, Karel, 2022. "Asymmetric effects of foreign capital on income inequality: The case of the Post-China 16 countries," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 613-626.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:scm:ejafbu:v:13:y:2020:i:23:p:1-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Liviu Scutariu The email address of this maintainer does not seem to be valid anymore. Please ask Liviu Scutariu to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/feusvro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.