Abstract

The Research’s Methodology:: The Fiscal Decentralization is one of sub-Topics of the Decentralization in general, as it requires the adequate sort of financial budget for the constituent units of the federal state, for the purpose and the targets stated in the Constitution and the law. The Iraqi legislature has adopted, a style application of political Decentralization and administrative Decentralization, at the same time, after the year 2003. So we can see an administrative regional Decentralization style in various fields, especially in the financial area, which is so important for the success of Decentralization to be applied whether political or administrative. Importance of the research: The Importance of this subject lies in the clarity of the constitutional, legal, fiscal Decentralization in a federal state, in comparison with the Iraqi laws for the period from 2003 on, and to clarify the deficiency in the field of enactment to propose new effective application of it. Research’s Obstacle: Although the existence of a constitutional and legal management for fiscal Decentralization in Iraq, but that regulation has led to an influential overlapping in the financial Jurisdiction between the Federal government and the constituent units Governments of the Iraqi state. Significant results: The provincial law No. 21 of 2008 has granted the provincial councils the authority to impose local taxes and fees exceeding the financial powers granted by the Constitution to the Central Government, so the legislator mixed the application of political and administrative Decentralization according this Act. The most important recommendations: 1-The need to speed up the enactment of the Federation Council, and the Law of the General Commission for monitoring the allocation of Federal revenue, and to activate the Supreme Commission for coordination among the provinces & Governorates in accordance with Article 45 of the Law No. 21 of the year 2008. 2–More accurate constitutional and legal regulation for regional Decentralized style should be achieved, with a new mechanism to hold free and fair elections for the Provincial Councils “PCs” and the Local Councils “LCs” of the sub-districts, these LCs should be granted with financial and administrative independence, then to activate a political and judicial monitoring on there works.