ACCOUNTING AND FINANCIAL SCIENCES JOURNAL

The research aims to demonstrate the impact of restructuring public expenditures on the state’s Public budget, identify financial engineering tools in how to restructure expenditures , and demonstrate the impact of these tools on the relationship between restructuring government expenditures and the state’s public budget. The research community was the Iraqi Ministry of Finance by relying on The actual financial data of the research sample, which is the Accounting Department, for the period from 2015 to 2022, in addition to other data that enhanced the practical aspect, was obtained from the Investment Department of the Central Bank, and interest rates on US treasury bills. The research relied on the descriptive and descriptive analytical approach, and the research concluded that using Financial engineering methods, ideas, and tools contribute to finding solutions to financial problems, which include reducing budget expenditures and managing its risks well, and that the total public expenditures in the budget are constantly rising and directed towards operational expenditures at the expense of investment expenditures , and there is a continuous surplus in the budget and that the deficit is a fictitious deficit. This is not real, and this is evident by comparing the total debt to the actual deficit and surplus in the budget.