The Impact of Inflation Rate on Public Expenditure in Syria

Abstract

The inflation rate is one of the biggest economic challenges facing the Syrian economy, and it has had a significant impact on all aspects of the economy. Public spending, both investment and consumption, is one of the most important components of the general budget and one of the main fiscal policy tools of the state that aims to implement its economic and social policy. government consumption expenditure reflects the effectiveness of fiscal policy and the extent of its influence and contribution to economic activity and the development of the state. Therefore, this research aims to study the impact of the inflation rate on the state's public spending, both investment and consumption. In this study, we also try to focus on the impact of government consumption expenditure on economic growth, as it is one of the indicators with a wide resonance in most comparisons between the levels of economic performance of countries, and evaluating this impact on the effectiveness of the fiscal policies followed, as well as evaluating government expenditure in light of the high inflation rate.

 
and shows the extent of development of the local economy during the study period. The effectiveness of fiscal policy on the national economy was also estimated, and the research concluded that there is a significant relationship between the inflation rate and the state's public spending, and that an increase in the inflation rate of 1% will result in an increase of (5610) times in public spending. The results of this research help in understanding the economic challenges facing fiscal policies in Syria.