The persistence of the same problems in the absence of fiscal reforms and the inability to address and confront administrative and financial corruption will undoubtedly make it inevitable that contradictions persist in the absence of sustainable development, especially as Iraq suffers from the worst performance of Gross domestic product growth since 2003. Instability, lack of employment, corruption, and poor services remain among the most significant risks to long-term growth in the country; hence the urgent need to improve the fragile federal budget through structural transformation, fiscal reform, and diversification of national income sources to give greater opportunity to the private sector. High levels of vulnerability, conflict, corruption, and dependence on oil for a single resource hamper the country’s progress towards fiscal and economic reform.

Economic logic confirms that there is a federal balance that can be called a fragile balance that does not have the capacity to achieve growth, prosperity, and sustainable development in the country; Therefore, the importance of research comes from the financial objectives, its social responsibility. The fact that Iraq’s budget remains so fragile could jeopardize the future of the State and its political system; Therefore, the objective of the research is to develop concepts and proposals to promote the reality of a fragile federal budget into an evolving one; for the sustainable development of the country.