THE EFFECT OF BONDS AND TREASURY REMITTANCES IN THE ECONOMIC

   Bonds or treasury bills are one of the internal borrowing means it was first released in (1947) and issued by the law of the legislature. The reason of  their issuance by law is being a financial burden on state  represented in the   payment of loan principal and its interests  at time of  its maturing and to the traditional  relevance which is connected to the tax as a  deferred tax   to which the state resorts in order to obtain the necessary funds   to repay the loan. Its issuance would be   according to direct and indirect subscriptions method and   selling in the stock market (stock exchange) and sell by bidding. Accordingly the reason behind  issuing such bonds    lies   at  reducing  inflation in terms of holding part of the cash loan at   individuals and institutions ,  strengthening and   maintaining the economic, political and military capacity of the state, etc; and the consequent multiple economic  effects on economic development  including the rivalry of financial investment to productive investment in kind ,thus the negative impact on the volume of real investment and  converting  the central bank of Iraq into a financing project institution which replaces the investment budget. Then canceling   the monetary authority and its functions in the case of expansion in accepting more treasury remittances and replace them with mandatory reserve in order to finance projects of different ministries. So the target of the research is to study the theoretical framework of treasury bonds, and the reason for their issuance and its effects on the economic development