Analysis Of The Impact Of Credit Money On Public Expenditure A Case Study Of The Iraqi Economy For The Period (2005–2022)
DOI:
https://doi.org/10.55640/jme-05-08-05Keywords:
Private credit, public credit, current spendingAbstract
The Iraqi economy is one-sided, relying on fossil fuels to finance its expenditures. These fuels represent a major export commodity upon which the state's general budget relies in determining its current and investment costs. This poses a significant threat to the Iraqi economy, prompting a search for alternative means of financing public spending. Amid this dilemma, monetary policy has emerged to play a crucial role in the financing process through cash credit, which mitigates the effects of occasional significant declines in government spending due to fluctuating oil prices in global markets.
The research aims to demonstrate the extent of the impact of cash credit on government spending. It is based on the hypothesis that cash credit significantly impacts government spending, especially during times of weak fiscal policy in financing government expenditures. The research also sheds light on a problem centered around the impact of cash credit on changes in government spending and, consequently, the impact of these changes on the Iraqi economy. The researchers used the quantitative approach to prove the hypothesis and the analytical deductive approach. They also used a quantitative approach to measure monetary credit and its impact on public spending, demonstrating its contribution to reducing the decline in government spending. The research drew several conclusions, indicating that monetary credit contributes to mitigating the decline in government spending and limiting the resulting economic impact, particularly in financing the economic development process that the Iraqi economy aims to achieve. The researchers also recommended reducing the severity of the effects of crises on government spending on the Iraqi economy by adopting a credit policy capable of expanding and directing credit to government contracts, particularly investment credit, as it is the most critical component of the general budget.
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Copyright (c) 2025 Asst. Prof. Dr. Raslan Abdul-Zahra Safi, Asst. Prof. Dr. Abdul Jasim Abbas Ala Allah, Asst. Prof. Karim Ubaid Hassan
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