Abstract:

      The evolution of countries has led to an expansion in spending on an ongoing basis and to diversification and change in structure. As the role of the state in economic activity developed, all the tools of fiscal policy developed. This development was reflected in the concept of public expenditure as the means used by the state to achieve its economic objectives. The study concluded that the spending policy in Iraq had a limited effect on non-oil GDP. The results of the standard analysis showed that the increase in spending the investment year in one unit leads to an increase in non-oil GDP by (0.05) while the increase in current expenditure in one unit leads to an increase in non-oil GDP by (0.06). While the share of commodity activities from public investment spending was low throughout the study period.