Analysis of the Reasons for Increasing Indebtedness in the Iraqi Economy after 2003

Abstract

Public debt is the primary source of financing the budget deficit and one of the most prominent financial policy tools, as the Iraqi economy is exposed to many external shocks due to the rentier nature of the economy, which has become vulnerable to external supply shocks, which means that the financial resources in the Iraqi economy are recovering due to the rise in oil prices (a positive external shock). ), and decline due to the decline in oil prices (a negative external shock), and since oil revenues constitute the largest portion of total public revenues, therefore, any change that occurs in international oil prices is reflected in the size of public revenues, and thus in the net general budget of the state.