{
  "title": "Iraq: Selected Issues",
  "publication": "IMF Staff Country Reports, July 26, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/07/25/iraq-selected-issues-48528",
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  "summary": "This Selected Issues paper discusses the choice and design of rules for Iraq, guided by fiscal policy priorities and the country’s institutional capacity.",
  "sections": [
    {
      "heading": "Key findings and diagnostics",
      "content": "- A ceiling on current spending is proposed as a fiscal rule that would be simple and easy to monitor.\n- Iraq’s heavy dependence on volatile oil revenues creates significant fiscal management challenges.\n- The procyclicality of fiscal policy has led to short-term economic volatility and hindered long term development.\n- Important fiscal institutions that exist in many resource-rich countries—fiscal rules, stabilization funds, and fiscal responsibility laws—are lacking in Iraq.\n- Moving to a risk- and rules-based approach is assessed as timely for Iraq."
    },
    {
      "heading": "Policy framework proposed",
      "content": "- Anchor fiscal policy on maintaining adequate fiscal buffers.\n- Introduce operational fiscal rules designed to:\n  - Achieve the target for fiscal buffers.\n  - Protect capital expenditure and create space to scale up capital spending.\n- A ceiling on current spending is highlighted as a rule that would support efforts to:\n  - Scale up capital expenditure.\n  - Build fiscal buffers to reduce fiscal policy procyclicality.\n  - Help secure debt sustainability."
    },
    {
      "heading": "Rationale and expected benefits",
      "content": "- Simplicity and ease of monitoring make a current-spending ceiling operationally attractive for Iraq.\n- Building fiscal buffers can reduce procyclicality and short-term volatility associated with oil revenue fluctuations.\n- Protecting capital expenditure helps advance long-term development objectives while maintaining fiscal sustainability.\n\n---\n\n Content in this bundle\n\n- Iraq:  Selected Issues; IMF Country Report No. 19/249; July 3, 2019\n  - Iraq:  Selected Issues; IMF Country Report No. 19/249; July 3, 2019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Iraq:  Selected Issues; IMF Country Report No. 19/249; July 3, 2019 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2019/07/25/iraq-selected-issues-48528/index.md)",
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    "[Bundle manifest](/en/publications/cr/issues/2019/07/25/iraq-selected-issues-48528/bundle-manifest.json)",
    "Published: July 26, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513508917.002",
    "A ceiling on current spending is proposed as a fiscal rule that would be simple and easy to monitor.",
    "Iraq’s heavy dependence on volatile oil revenues creates significant fiscal management challenges.",
    "The procyclicality of fiscal policy has led to short-term economic volatility and hindered long term development.",
    "Important fiscal institutions that exist in many resource-rich countries—fiscal rules, stabilization funds, and fiscal responsibility laws—are lacking in Iraq.",
    "Moving to a risk- and rules-based approach is assessed as timely for Iraq.",
    "Anchor fiscal policy on maintaining adequate fiscal buffers.",
    "Introduce operational fiscal rules designed to:",
    "A ceiling on current spending is highlighted as a rule that would support efforts to:",
    "Simplicity and ease of monitoring make a current-spending ceiling operationally attractive for Iraq.",
    "Building fiscal buffers can reduce procyclicality and short-term volatility associated with oil revenue fluctuations.",
    "Protecting capital expenditure helps advance long-term development objectives while maintaining fiscal sustainability.",
    "**Iraq:  Selected Issues; IMF Country Report No. 19/249; July 3, 2019**"
  ],
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    {
      "title": "Iraq:  Selected Issues; IMF Country Report No. 19/249; July 3, 2019",
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