A study at the College of Administration and Economics at the University of Karbala discussed the role of Islamic banks in financing the budget deficit – international experiences with the possibility of benefiting from them in Iraq.

The study aimed to determine the nature of investment funds in Islamic banks, determine the size of their financing, know the extent of their development and their ability to support the budget, and explain the mechanisms of financing the non-traditional public budget deficit.

The study concluded that there is an active role for Islamic banks in financing economic activities according to the Islamic formulas applied in Islamic banks.

The study recommended rationalizing consumer spending, eliminating financial and administrative corruption, and addressing disguised unemployment in state institutions. To reduce current expenditures and move towards investment spending; To increase financial returns.