This report investigates Iraq's budgetary mismanagement. As stated in the introduction, the study will assess these policies' effects and make fiscal management recommendations for Iraq. The study emphasises monetary and budgetary policy's impact on the economy. The report's second section blames Iraq's economy on poor economic policies. This paper examines how these policies affected Iraqi economic indicators and industry. We use financial data, statistical models, and relevant literature. The inadequate fiscal policy caused manufacturing and agriculture declines, budget deficits, and inflationary pressures. This study reveals how these policies inhibit poverty reduction and social advancement. This study assesses the Iraqi economy and suggests improvements. These attitudes support economic growth and stability. These are prudent fiscal management, open government finances, income diversification, critical industry investments, and structural reforms. This essay discusses fiscal policy's drawbacks and proposes remedies for Iraq's economic transformation by emphasising budgetary missteps. This underscores the need for politicians to address financial policies and develop a long-term strategy to stabilise and build the Iraqi economy to help Iraqis prosper.