The relationship between oil revenues and the Iraqi federal budget for the duration (2004-2016)

Abstract

The oil sector plays an important role in the Iraqi economy. Since the establishment of the modern Iraqi state in 1921, the oil sector has played a major role in the financing of development projects in the country. However, this importance has increased since 1951 as oil revenues have increased to become the main financier of the public budget. The economic situation in Iraq is dependent on public revenues, especially oil revenues. After 2003, as a result of the lifting of the economic embargo on the one hand and the rise in oil prices on the other hand, the volume of oil revenues increased and the budget was heavily affected by increasing oil revenues.

            The study aims at clarifying sources of non-oil income to face the risks and forms of low oil prices, showing the extent of the reversal of oil prices, as well as measuring and analyzing the impact of oil revenues in the general budget in Iraq for the period (2004-2016).

            The study concluded that Iraq occupies a prominent position among the oil countries in the world. whether in terms of proven oil or reserves and comes third in the world after Saudi Arabia and Venezuela., having proven reserves of (143) billion barrels, 350 billion barrels qualify it to be the first producing and exporting oil in the world in the coming years, Iraq's oil revenues increased after 2003 due to the rise in oil prices globally.