Abstarct
The role of public expenditures is of great importance in the national economy. If the goal of public spending is to satisfy the public needs to what a State may have to go to satisfy these needs, and what is the extent that they should end at trading the urgent requirements of expenditures against deterioration in the structure of the national economy and the failure of the various sectors. Note that the structural distortion in the Iraqi economy, and as a result of political and social pressures, arrived at a level that is difficult to diagnose as well as treat, because of the priority given to the urgent needs and the lack of attention to developing the economy and its development. This research aims to determine the optimal financial policy to achieve the general economic and social goals, and optimization of public spending in accordance with the requirements necessary to develop the economy and to achieve the requirements of society and thus achieving the general economic balance. Considering that the trade-off between alternatives in the allocation of resources is based on the adoption of goals priority, in addition to that the requirements of social development and sustainability can not be achieved unless there is a structural change in the economy.
