The state's justifications for public borrowing and its economic effects on it Analytical legal study

Abstract

Abstract: The importance of the research lies in understanding the concept of public debt, as it is a double-edged sword. On the one hand, it provides the state treasury with funds due to the shortage in state revenues for many reasons, including wars or the state's need to undertake necessary strategic projects that it is unable to finance, especially when the state resorts to other solutions that are ineffective, such as increasing taxes to an unsustainable level. This aspect is considered positive. On the other hand, the negative aspect is that it burdens the state with financial interest resulting from borrowing, which may be a considerable amount and beyond the state's capacity, thus negatively affecting future generations due to its negative economic effects on the state, through the state's inability to perform its constitutional and legal duties, such as providing security, food, and others.