The Relationship Between Fiscal Policy and Public Debt and its Role in Strengthening Economic Stability and Achieving the Requirements of Economic Development in Iraq

Abstract

For the purpose of making the relationship clear between fiscal policy and public debt and its role in supporting economic stability with achieving economic development in Iraq and through the use of financial and economic data in the public budget and analyzing them and finding the ratio of public debt to indicators of financial and economic stability, the research has come to conclusions, the most important is that the Iraqi government, represented by its financial institutions, has entered into a state of financial distress, and is no longer able to overcome the debt crisis and its service, especially after the world financial and economic crises, and the state of political instability. Which Iraq experienced during the research period, as it relied on funding for military expenditure programmes in addition to sheltering displaced people, which made the debt problem more complicated, as well as that the loans were not directed to the investment doors to produce a financial revenue that covers the public debt or its service, but was directed to the doors of consumption, which led to the loss of the wanted interest from borrowed money, The research has come to a number of recommendations, the most important is that the government should go to debt management, in order to overcome cases of waste and financial corruption , working to invest them in the productive sectors to reduce the burden of public debt through the revenues of those sectors.