Productive Efficiency of Expenses in Reducing Public Debt Ratios in Iraq

Public expenditure is a crucial tool for achieving economic goals that impact the entire macroeconomy. When directed towards productive spending, it can support the development process of the economy. However, the Iraqi economy suffers from excessive rates of public spending and a weak capacity to address global or local economic imbalances. This is due to the fact that Iraq's spending is largely dependent on rent revenues and the underdevelopment of its productive sectors. Consequently, this has led to an imbalance in its economic equilibrium and an increase in macroeconomic volatility. This, in turn, has exacerbated the burden of external and internal debt in the face of macroeconomic fluctuations. Therefore, it is essential to implement mechanisms and adopt economic ideologies that enhance the productivity of public spending. This will help reduce public debt levels and yield benefits for the economy.