The research aims to identify and analyze the evolution of public debt (internal and external) in the Iraqi economy during the period (2004-2023), because it is one of the sources of financing the deficit in the general budget, and it has a direct impact on the Iraqi economy. The Iraqi economy has a deficit in the general budget as a result of increased expenditures on the one hand and decreased public revenues on the other hand. The deficit is addressed by the state borrowing, whether it is internal debt or external debt,The results of the theoretical analysis for the period (2004-2023) showed that the contribution of external public debt to the total public debt is very high compared to the contribution of internal debt. This means that the Iraqi economy is frequently exposed to financial crises, because external debt is denominated in foreign currency, in addition to the accumulation of interest resulting from it, which makes the country burdened with financial obligations towards creditor countries. The increase in the contribution of internal public debt to the total public debt for the years (2014-2017) indicates the government's tendency towards internal debt sources to finance the general budget deficit after the shock of the drop in crude oil prices and the increase in military spending due to the ISIS organization. The study recommended a set of recommendations, most notably working on developing an economic policy or strategy for managing public debt and reducing reliance on internal and external borrowing except in cases of extreme necessity.