Oil price fluctuations and their relationship to government spending in Iraq for the period 2004-2022

Abstract

The study aimed to know the fluctuations in global oil prices and their relationship to government spending in Iraq for the period 2004-2022, and to know their positive and negative effects and repercussions on the country’s general budget. The study was based on a set of hypotheses, the most important of which is: There is a positive correlation between fluctuations in global oil prices and government spending in Iraq. The descriptive analytical method was used in order to reach the results, the most important of which were the growth rates of total government spending, as they also varied greatly between rising at times and falling at other times throughout the study period. There is a complete direct relationship, which is demonstrated by the identical time path for the two series, which means that crude oil prices, whether average global prices, Basra Light oil prices, or others, are the influential and decisive factor in the volume of oil revenues.