Parliamentary Finance: Crisis Management requires the state to resort to organizing a budget for recession
Parliamentary Finance: Crisis Management requires the state to resort to organizing a budget for recession
04/23/2020 08:35:28
{Baghdad: Al Furat News} The Finance Committee confirmed in the House of Representatives, on Thursday, that crisis management makes it necessary for the state to resort to organizing a budget for the recession.
Committee member, Ahmed Al-Saffar said, “Iraq relied 93% on oil revenues in the 2019 budget, and now after the outbreak of the (Corona) epidemic globally, low oil prices and weakness, which happened in other revenues and trade exchanges, which led to more dependence on oil despite Low prices. ”
He added, “It has become imperative for Iraq to resort to other means, as a country has a central bank and has sovereignty and monetary and financial policy, so it can use a number of tools and a package of policies to confront the crisis, which many believe is short and mortgaged to control this epidemic and the return of oil prices To what it was in the past if the demand side increases after operating factories, factories, air traffic, tourism and other economies. ”
Al-Saffar indicated, “The government has possible alternatives in fiscal policy. The simplest is to resort to temporary treasury bonds by offering bonds to the central bank and other banks, which deduct and collect the remaining salaries, resort to collecting financial surpluses, focus on necessary spending, stop other expenses, and focus on providing The money needed to pay the salaries. ”
A member of the Finance Committee explained, “The state should take care of the operational budget, which relates to the necessary daily expenses and transfer of funds and other surpluses from the ministries after the majority of them stopped working, and the interest rate reduction being very high, after some countries reduced their interest rates to below zero for the turnout To borrow and move the economy. ”
Al-Saffar indicated that “crisis management requires the state to resort to organizing a budget for the state of stagnation, organizing expenditures and public revenues, controlling the spending side and focusing on spending the necessary funds, and maximizing resources that are wasted in most of them, the most prominent of which are border crossings, tax revenues and inactive state property, which can Collect revenue to meet this crisis. ”
He stressed that “in the coming stage, diversification of the sources of budget financing, and in particular dependence on agricultural production, should be diversified, as it is an essential pillar for the advancement of the Iraqi economy, being a country rich in financial and human resources and achieving self-sufficiency, and some of it can be exported abroad, in addition to the sectors of industry, tourism and trade.”
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