Abstract
The public budget deficit is one of the problems that various countries in the world suffer from, especially Iraq, which prompts the government to cover this deficit through internal and external borrowing, which leads to an increase in its public debt. The existence of a planned financial deficit in the Iraqi public budgets was negatively reflected in the trend towards the internal public debt, and for this reason the importance of the research came to clarify the reciprocal relationship between the public budget deficit and the internal public debt, and for this reason the goal of the research was to shed light on the causes of the public budget deficit and ways of financing it and to identify the causes and sources of financing that debt Down to the analysis of the relationship between the public budget deficit and the internal public debt in Iraq for the period (2004-2021), In order to reach this, the relevant data was analyzed to reach the results on the one hand, and the standard quantitative analysis was used to indicate that relationship based on the statistical program (EVIEWS: 12), and it was concluded that there is one causal relationship that goes from the budget deficit to the internal public debt, i.e. the presence of a long-term relationship between the two variables, and thus a long-term co-integration relationship between the budget deficit and internal public debt
