Abstarct: This study investigates the effectiveness of economic planning systems in strengthening the financial sustainability of the Iraqi government. Financial sustainability is considered one of the key prerequisites for macroeconomic stability and sustainable economic development, particularly in oil-dependent economies. The study examines the impact of several economic planning components, including economic planning effectiveness, the dominance of current expenditures over capital expenditures, oil revenue dependency, non-oil revenues, medium-term financial planning, performance-baxsed budgeting, and fiscal-monetary policy coordination on Iraq’s financial sustainability. Annual data covering the period 2004–2023 were collected from reliable national and international sources. The Autoregressive Distributed Lag (ARDL) approach was employed to analyze both short-run and long-run relationships among the variables. The results of stationarity and bounds tests confirmed the existence of a long-run equilibrium relationship between the study variables. The findings indicate that economic planning effectiveness, non-oil revenues, medium-term financial planning, performance-baxsed budgeting, and fiscal-monetary policy coordination have positive and statistically significant effects on financial sustainability. In contrast, oil revenue dependency and the dominance of current expenditures exert negative and significant impacts on financial sustainability. Furthermore, the error correction model confirmed the existence of a stable adjustment mechanism toward long-run equilibrium. The study concludes that reducing dependence on oil revenues, reforming the budget structure, expanding non-oil revenue sources, and strengthening modern financial planning frxameworks are essential policy measures for enhancing the financial sustainability of the Iraqi government. The findings highlight the critical role of effective economic planning in achieving long-term fiscal stability and sustainable economic development in Iraq.