Efficient use of public debt towards economic growth in Iraq for the period (2003-2021)

Abstract

The expansion in the public and general costs happened the past couple of years due to the security situations and the drop of oil prices، have forced Iraq to deem more debts. This had a serious negative impact on the growth of the Iraqi economy. For this reason، the goal of this study is to focus on the importance of the wise and professional use of the debt. The study emphasized that the debt must be invested in the general operations that have a significant impact on the growth of the economy. In addition، these investments have a direct impact on the private sectors projects and operations. The study showed that the general debt is inversely proportional to the economy growth in the long term. That means the debt wasn’t invested efficiently and had minimum impact on the growth of economy. The study suggested that the debt must be managed by an independent committee that will be in charge of the professional and efficient utilize of the debt. Furthermore، the debt must be invested to create productions and not to be used for consumable actions. This can be achieved by using a solid and Robust financial policy