The impact of public spending on inflation in Iraq for the period (2003 -2017)

AL-Bdairi, Mortada Hussein Lafta

	The impact of public spending on inflation in Iraq for the period (2003 -2017)
Journal of Kirkuk University For Administrative and Economic Sciences
Volume 12, Economic and Accounting Side, October 2022, Pages 265-291
Author
Mortada Hussein Lafta AL-Bdairi
Abstract
The public spending is of great importance in financial studies so it is the most important tool and the most used by the state to achieve progress and development in the economic and financial fields, so it can be seen that the policy of spending largely reflect the goals set by the governments, which aims to promote The national economy for the purpose of advancing the development and economic stability of any country, as it is a study of the index of the state's financial activity and a tool of this analytical in addition to that it examines the effects on various sectors of the national economy as it includes the solution This should be based on a sophisticated spending policy that is capable of achieving the desired goals, in addition to the need for state intervention in economic activity, especially after the failure of the theories of thought Economic consequences and subsequent negative results have led to poor distribution of income and increased unemployment and inflation and the subsequent occurrence of crises. The research found that the increase in revenues after 2003 and the subsequent expansion in the size of the administrative apparatus of the state and the linkage of expenditures with the revenues of oil exports and the increase in foreign exchange revenues led to a rise in the volume of public spending and then striving towards economic growth and rebuilding what was destroyed by wars. There is a direct relationship between consumer spending and the rate of inflation, and there is an inverse relationship between investment spending and the rate of inflation. Therefore, an expansionary fiscal policy must be followed during periods of depression, and a contractionary fiscal policy must be followed in the event of economic recovery, in addition to trying to multiply the sources of income to finance the general budget with various revenues. The research included three main sections representing the first topic with a conceptual framework for public spending. The second topic included the conceptual framework for inflation, and the third topic included measuring and analyzing public spending on inflation for the period (2003-2017).
Keywords
inflation; public expenditure; investment spending; consumer spending

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