Introduction Public finance is one of the fundamental pillars of modern economic thought. It represents the framework through which governments manage revenues, expenditures, public debt, and fiscal policy. Its importance lies in its direct influence on economic activity and financial stability. Concept and Objectives Public finance studies how governments obtain financial resources and allocate them efficiently. Its objectives include economic stability, income redistribution, economic growth support, and provision of public services. Fiscal Policy Tools Fiscal policy relies on public revenues such as taxes and oil revenues, and public expenditures divided into current and capital spending. Expansionary policy is used during recessions, while contractionary policy is applied to control inflation. Public Finance in Iraq The Iraqi economy depends heavily on oil revenues, making the national budget vulnerable to oil price fluctuations. Therefore, diversification of revenue sources and improving spending efficiency are necessary reforms. Conclusion Effective management of public finance is essential for achieving economic stability and sustainable development, particularly in developing economies.