02216cas a2200241 a 4500 AALejournalIMF015796 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513508917 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Middle East and Central Asia Dept. Iraq : Selected Issues. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (48 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper discusses the choice and design of rules for Iraq, guided by fiscal policy priorities and the country's institutional capacity. A ceiling on current spending is proposed as a fiscal rule that would be simple and easy to monitor and support efforts to create space for scaling up capital expenditure, build fiscal buffers to reduce fiscal policy procyclicality, and help secure debt sustainability. A strong policy framework can help Iraq manage the challenges arising from its heavy dependence on volatile oil revenues. The procyclicality of fiscal policy has led to short-term economic volatility and hindered long term development. Important fiscal institutions such as fiscal rules, stabilization funds, and fiscal responsibility laws that exist in many resource-rich countries are lacking in Iraq. Moving to a risk- and rules-based approach can be part of the new policy framework and would be timely. The two main building blocks of this approach involve anchoring fiscal policy on maintaining adequate fiscal buffers, and introducing operational fiscal rules designed to achieve this target for buffers and protect capital expenditure. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/249 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/249/002.2019.issue-249-en.xml IMF e-Library