The significance of financial sustainability stems from the importance of public finance in the economy, as it is a form of financing that the state resorts to in order to finance government spending for the public budget. It demonstrates the capability of the state to implement its work programs for various activities within a certain range, without discouraging its future ability to spend and is based on the capability of the government to fulfill its future obligations. The research aims at identifying the basic and theoretical concepts of financial sustainability and its indexes, in addition to analyzing the indexes of financial sustainability in Iraq for the period (2004-2022). The sustainability of public finances in Iraq represents the research problem. Financial sustainability, as defined, is the ability of the state to maintain current spending and various revenues for a long period without being threatened by cases of financial insolvency, failure, or the liabilities that impede the government obligations that Iraq has gone through, such as delaying the salaries of employees in the government sector or delaying paying contractors’ dues. The budget constraint, a rule that stipulates that public expenditures should not exceed the funding thresholds or the capacity for public revenues, must be adhered to in order for financial sustainability to be attained without risk. The researcher used the descriptive analytical method to analyze the reality of financial sustainability in the Iraqi economy. The research has come up with the following results: The internal debt declined continuously during the years (2004-2008) due to the rise in crude oil in the global markets, especially after the lifting of economic sanctions and allowing an increase in oil exports. The internal debt also increased in (2009) due to the decline in crude oil prices in the global markets as a result of the negative effects of the global crisis (2008), which led to the country tend to borrow domestically to finance the deficit in the public budget. The ratio of the public budget deficit to the GDP also declined as a result of decreasing the crude oil prices and the outbreak of Covid-19, which negatively affected the oil revenues, decreased the GDP growth rate, and increased unemployment rates as a result of imposing a lockdown in the country.