EVALUATING THE EFFECTIVENESS OF FISCAL POLICY IN ACHIEVING ECONOMIC STABILITY: AN ANALYSIS OF FISCAL IMPACT WITH A FOCUS ON UNEMPLOYMENT RATE STABILITY IN IRAQ FOR THE PERIOD (2004–2024)

Authors

  • Abbas Dawood Salman College of Administration and Economics, University of Baghdad
  • Azhar Hassan Ali Abu Naylah College of Administration and Economics, University of Baghdad

DOI:

https://doi.org/10.18623/rvd.v23.5673

Keywords:

Fiscal Policy, Labor Market Stability, Public Expenditure, Taxation Policy, Employment Generation

Abstract

The evaluation of fiscal policy performance is considered an important analytical tool for measuring the government's ability to achieve economic stability, particularly its role in strengthening labor market stability. The effectiveness of fiscal policy appears in its ability to use its main instruments, such as public expenditure and taxation policy, to influence aggregate demand and stimulate economic activity. When public spending is directed toward productive sectors, infrastructure, and labor-intensive investments, it contributes to creating new job opportunities and reducing unemployment rates, which in turn enhances the stability of the labor market. In addition, a balanced tax policy can encourage private investment and support economic projects, which positively affects employment levels. Evaluating fiscal policy performance also helps reveal the efficiency of public resource allocation and its ability to address structural imbalances in the labor market. If fiscal policy is characterized by flexibility and responsiveness to economic cycles, it can help reduce fluctuations in employment and income levels. In this context, the efficiency of fiscal policy represents a key factor in achieving balance between labor supply and demand, while also strengthening social and economic stability. Therefore, assessing the performance of fiscal policy is an important indicator for judging the state's ability to manage the labor market and achieve more effective and sustainable levels of employment.

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Published

2026-04-01

How to Cite

Salman, A. D., & Naylah, A. H. A. A. (2026). EVALUATING THE EFFECTIVENESS OF FISCAL POLICY IN ACHIEVING ECONOMIC STABILITY: AN ANALYSIS OF FISCAL IMPACT WITH A FOCUS ON UNEMPLOYMENT RATE STABILITY IN IRAQ FOR THE PERIOD (2004–2024). Veredas Do Direito, 23(5), e235673. https://doi.org/10.18623/rvd.v23.5673

Issue

Vol. 23 No. 5 (2026): Veredas do Direito, v. 23, n. 5 2026

Section

Articles

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