Financial planning and its impact on improving tax revenues in Iraq: An applied study in the general tax authority

Abstract

In their various forms, tax revenues represent an important source of funding for the state’s general budget. The Iraqi economy is characterized as a single-revenue economy, with more than 90% of the financial revenues in the general budget relying on oil revenues. Tax revenues, however, tend to be variable and unstable as political, economic, and social factors influence them. Given the significance of these revenues, this research aims to illustrate the role of financial planning in preparing the general budget by optimizing the tools and methods crucial for utilizing tax revenues to cover both operational and investment expenditures. The researcher reached several conclusions, the most important of which are: There is awareness and understanding among the senior management of tax departments regarding the use of financial planning and the effective exploitation of tax revenues in budget preparation to a considerable extent. Tax departments have sufficient scientific and practical expertise, which is utilized and applied for financial planning purposes and for leveraging tax revenues to support the general budget. The key recommendations include: Enhancing the capabilities of employees in tax departments in the field of financial planning and budget preparation through participation in training workshops and diverse committees. Establishing specialized sections in tax departments dedicated to financial planning and budget preparation to articulate a clear vision for these departments regarding financial planning and budgeting.