Operational spending pressure in light of the use of the internal public debt to finance the public budget deficit in Iraq

Abstract

The study shows the influence of operational spending pressure with the use of the internal public debt tool in financing the general budget deficit in Iraq from 1990 to 2021. The results of the standard analysis according to the statistical program (Eviews9) show that reducing operational spending leads to filling Part of the general budget deficit because operational expenditures constitute the largest proportion of the total public expenditures, the use of the internal public debt instrument provides funds to cover part of the public budget deficit, and this is explained by the value of R2 = 0.88 meaning that (88%) of the changes in the budget The generality as a dependent variable is due to the changes in (operating expenditure, internal public debt) as independent variables and (12%) represented by the random variable. Also, the value of (5.458682F =) at a Sig. level of 5% and a probabilistic value (Prob = 0.005242) shows Joint integration between the variables included in the model indicating a long-term equilibrium relationship, as the value of (DW = 1.520874) showed that (3 > DW > -3) has no autocorrelation problem for the values of the random variable indicating operating expenditure pressure. Using internal public debt instrument leads to filling part of the deficit in the public budget in Iraq. All the tables are prepared by the researcher based on the outputs of the Eviews9 program.