Parliamentary Committee: The deficit in the borrowing law amounts to 41 trillion dinars

Parliamentary Committee: The deficit in the borrowing law amounts to 41 trillion dinars

12/10/2020 10:19

Parliamentary Committee - The deficit in the borrowing law amounts to 41 trillion dinarsWhere News_Baghdad

The Finance Committee of the House of Representatives said, on Monday, that the deficit percentage in the alternative law for the fiscal budget for 2020 prepared by the government is 41 trillion dinars.
The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said, “The fiscal deficit bill that was sent by the government came as a loan and compensation for the 2020 budget draft.”
Al-Saffar added, “The draft law includes revenues and expenditures for the remaining four months of the year,” and the deficit amounts to 41 trillion dinars and 629 billion dinars to secure the operating budget and what is related to salaries, compensation, licensing contracts, etc.
, and continued, “The current draft law replaces the 2020 budget law. It states that, “Given the withdrawal of the federal budget law sent to the House of Representatives, we send a draft law on financing domestic borrowing to finance the fiscal deficit for the year 2020.”
In addition, the Parliamentary Finance Committee held a meeting, yesterday, Sunday, with the Governor of the Central Bank of Iraq, Mustafa Ghaleb, at the committee’s headquarters in Parliament. Al-Saffar said: “The committee discussed the status of the bank and the cash reserve of foreign currency in addition to the (white paper),” that will be presented. Ministry of Finance to reform the financial and economic situation in the country.
Al-Saffar criticized the Ministry of Finance’s management of public funds in Iraq through borrowing, warning that “continuing the borrowing process will push Iraq into bankruptcy in the future in the absence of a reform vision by the ministry, especially since the debts continue to increase.”
The decision of the Finance Committee stated, “Before the first borrowing process last June, there was an internal borrowing of 40 trillion dinars, to which 15 trillion dinars were added in June, so that the internal borrowing becomes 55 trillion dinars, and in case the new borrowing is approved, which is 41 trillion dinars, Internal borrowing will be 96 trillion dinars. ”
He added, “As for the previous external borrowing, it was $ 25 billion, and $ 5 billion was added to it in June, so the external borrowing became $ 30 billion, except for the hateful debts of the Gulf countries that are around $ 40 billion, which are not talked about and the extent of their impact in the event of a claim. “.
Al-Saffar renewed the warning that “if the situation remains as it is, borrowing will negatively affect the credit rating of the Iraqi state and the financial position of the government, as well as its impact on foreign dealings with Iraq.”

alliraqnews.com