Abstract
The study aims to know the impact of the internal public debt and the exchange rate on the general budget deficit, as the research variables and the nature of the relationship between them in the Iraqi economy were studied during the period (2004-2023). The importance of the study lies in researching and analyzing the relationship between the internal public debt and the exchange rate on the general budget deficit. And the economic dimensions of each of them through reviewing the theoretical and conceptual framework of the study variables and using the abular data analysis method, as well as using the quantitative aspect through the ARDL co-integration methodology. Through it, it was concluded that there is a significant relationship between the explanatory variables represented by the internal public debt (IPD), the exchange rate (ER), and the dependent variable, the public budget deficit (PBD). The nature of the relationship between the internal public debt and the budget deficit was inverse. While the nature of the relationship between the exchange rate and the budget deficit was direct, the most important ecommendations were to exploit opportunities to achieve a surplus in revenues through the rise in oil prices by establishing an investment fund to finance the budget when the deficit occurs and allocate part of it. To pay off the public debt, which provides the opportunity not to resort to borrowing, whether internal or external
