This research attempts to investigate the impact of corruption on the allocation of public spending, and the overall revenue for the government, and on the quality of government services and the application to set the Middle East and Central Asia, which was available the information required for analysis. Using the method of combined data for time series and cross-section for the duration of 2005-2012 have been highlighted two types of effects caused by corruption in government spending. The first is "the impact of quantity," which is the amount of spending on virtually every economic function generally as a percentage of GDP, and this measures the impact of corruption on the allocation of each type of public spending, and the second is "distributional impact" any share of each sector of the economy of this spending on , which measures the distortion caused by corruption in the state budget. It has been found that corruption has a negative impact on the allocation of the budget, and show that corruption distorts the composition of government spending in the general budget. It also has the distinction between "the effect of outcome" included reducing tax receipts as a percentage of GDP, and "the impact of the tax structure," which means distort the tax structure toward preference for indirect taxes. Using cross-section data for the year 2011 were analyzed the relationship between the quality and efficiency of government services and corruption, and have found that the quality of government services become more ill whenever the degree of corruption is greater. Worsen as health and education services provided by the government. And also shows that low levels of corruption contribute to improving the quality of government services, while government services go wrong when high levels of corruption.
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