Abstract

Measuring the Relationship Between Public Debt Refinancing Mechanisms and Directing the Public Budget in Iraq

Dr. Azhar Hasan Ali, Noor Abdul Razaq Abdul Wahaab

Volume: 13 Issue: 2 2023

Abstract:

Public debt is an important financial tool used by the state to direct economic activity and to ensure its stability and increase its growth rates, but the increase in the volume of that debt in any economy is a major reason for the state to resort to taking appropriate measures to limit its effects through the use of debt refinancing mechanisms, which It is based on changing the structure of the public debt through either changing the size of the debt by replacement or scheduling, or by changing the creditor through the use of securitization and investment. As the use of these mechanisms has a major role in guiding the general budget. The research concluded that there is a co-integration relationship between some refinancing mechanisms (scheduling and the public debt sustainability index) and directing the general budget in Iraq. While the researcher suggested the need to work with the public debt scheduling mechanism as a whole and not be limited to a part of its structure in order to reduce public debt with the possibility of amortizing it and benefit from the time granted by scheduling in initiating an investment approach in projects that contribute to increasing public revenues and through which it can be paid That debt, achieving financial sustainability, and reducing the public budget deficit.

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