Versita

Measuring and Analyzing the Impact of Public Debt on Spending for A Year Using the ARDL Model in Iraq for the Period (2004-2020)

Nazar Kadhim Sabah Al-Khaykanee ,Yusra Rasem Jabbar
Keywords: Iraq, public debt, public spending, ARDL model ,

Abstract

With the increase in the budget deficit, the borrowing increases with it, and consequently the burden of its services in terms of interest and installments increases from year to year, and Iraq is one of the countries in which the budget deficit leaves a reason for internal and external borrowing, and then increases the burden of public debt by influencing public spending. Public debt has become a preoccupation in Iraq, and it suffers from bearing the accumulation of public debt and the effects that its expansion leaves on the performance of public spending. Therefore, the research aimed to analyze and measure the impact of public debt on public spending in Iraq for the period (2004-2020) using the (Eviews-12) program, and the results showed the absence of a clear impact of public debt (DE) on public spending (EX) in the long term Due to the presence of other expansionist factors that contributed to the increase in public spending, represented mainly that public spending depends for its financing on revenues from crude oil, and therefore the relationship between public debt and public spending is weak.