The Economic Effects of Public Loans and their Impact on National Income in Exceptional Circumstances, Iraq as a Model in Light of the Deterioration of Oil Prices

Some exceptional conditions, like natural disasters, climate changes and the Covid-19 pandemic, have played main role and caused clear effects on the international economy as a whole and the Iraqi economy in special. This study and research aim to define the economic consequences of the loans which affected the Iraqi national income and its relation with the general budget which caused a continuous failure in the economy, especially its relation with the oil prices which undergoes instability in supply and demand based on the conditions and changes occur in the international market. This study also tries to show the reasons which caused Iraq to borrow uninterruptedly in spite of his different natural sources on which it can depend and use to balance its federal budget and remedy its failure so that it can pass the stage of depending on the revenue and become one of the industrial progressive states. The main quest in this study is: What are the economical consequences of the loans and their effect on the national budget in the exceptional conditions (in Iraq as an example) under the downfall of the oil prices? The kernel problem we faced in preparing this study lurks in the sources we dealt with, although many of them have dealt with the economical consequences of the loans but they did not highlight a technical study regarding the relation between the national budget and the exceptional conditions in Iraq which can cause catastrophic results in different field of life, humane, and social sector as the government suffers a clear and connected failure in the budget. Iraq is considered one of the main states that depend on revenue, especially the oil in general. In this study we supposed that general loans can have positive consequences too and can be managed correctly to confront all crises and bad economic conditions, by imposing suitable and appropriate plans, and create strategic alternatives which can serve the whole state sectors and support its economy. Our study has based on descriptive and analytic method.