This study used data from 2003-2022 as the continuation of the fiscal deficit in the public budget led to an increase in the volume of public debt both internal and external, and the reason for the increase in these public expenditures more than public revenues is the result of Iraq's entry into more than one political and military crisis such as the Gulf War and the international sanctions imposed on Iraq and represented by the economic blockade, as well as the increase in public debt during the period 2016-2014 as a result of the decline in oil prices And the war on terror, which led to the accumulation of the benefits of the external debt. This led to the state resorting to debt as debt is the quick solution to cover this deficit Iraq is suffering from economic crises that are complemented by increased public expenditures on the one hand, low revenues, weakness of the private sector in developing countries and its inability to exploit the country's economic resources due to financial incapacity. Therefore, the increase in public debt to the extent that the government cannot cover its financial burdens will lead to the accumulation of these debts, which will make it difficult for the state to meet its obligations to creditors, and this will reflect negatively on the local economy by paralyzing development efforts and the consequent debt service and repercussions.