The role of oil revenue in shaping Iraq's public budget

The objective of this paper was to give a wide overview of the background of Iraq’s economy during last five decades. From the previous studies, it is evident that oil export has made a significant contribution to the Iraqi economy. This contribution, as we have analyzed took the form of periodic injections of purchasing power into the domestic economy. However, changes in the country's earnings were mostly influenced by crude oil revenues, reflecting global prices of oil and daily level of oil production. Then the fluctuating oil price and production levels disturb this injection and also disturb whole Iraqi economy. Due to changing oil revenue, the structure of Iraqi economy significantly changed from tradable goods sectors to non-tradable goods sector. Apart from that the contribution of oil sector to GDP has significantly increase and government expenditure also increased sharply. The outcomes is shown in data via tables and figures throughout the period of 1970-2013.