Financial discipline is one of the most important goals sought by oil-producing countries, including Iraq, because it achieves maximization of revenues and financial sustainability, and reduces the risks of oil price fluctuations, as financial rules contribute to establishing transparent, credible and applicable financial policies. This is what the government must cover its current expenditures from current revenues, or that the financial deficit does not exceed a certain percentage of the gross domestic product, so that public spending is estimated in light of the available financial capabilities and not according to the financial needs presented by the various administrative units and bodies. This requires paying more attention to current and future needs and curbing excessive spending and then deficits to maintain sound financial discipline through indicators of financial rules.

Financial discipline is one of the most important goals sought by oil-producing countries