Economist: two roads for Iraq to bridge the 2021 budget deficit

Economist: two roads for Iraq to bridge the 2021 budget deficit

2020-11-15

Economist - two roads for Iraq to bridge the 2021 budget deficitToday, Sunday, the economic expert, Mazhar Muhammad Salih, identified two ways for the country to fill the actual deficit in next year’s budget, while noting that borrowing this time will be from individuals.

Saleh said in a press statement that “the large financial surplus of individuals is important in internal investment, and reducing the deficit in the next budget.”

He added, “If the budget for next year is based on an actual and not hypothetical deficit, then it is financed from the oil price differentials when the oil market improves in the interest of exporters, then the deficit is only financed by borrowing.”

He pointed out that “there may be a greater role for external borrowing this time, and internal borrowing this time will be directly from individuals or the public, through making fundamental improvements to the secondary market that handles buying and selling.”

He pointed out that “the Iraq Stock Exchange will have a fundamental role in expressing the secondary market and promoting dealing with debt financial instruments, among the public directly as individuals and institutions.”

He explained, “There is a large financial surplus among the public, concentrated in the form of hoarding disconnected from the income cycle,” indicating that “the national economy desperately needs it in moving real material and human resources, through investment and its financing from Iraq’s internal financial energies.”

Last Tuesday, the Prime Minister, Mustafa Al-Kazemi, called on the Finance Ministry and other ministries to expedite the presentation of the 2021 budget “because of its importance in running the country’s affairs.”

The General Secretariat of the Council of Ministers indicated that Al-Kazemi directed the Ministry of Finance to include the budget in the agenda of the Council of Ministers.

The Parliamentary Finance Committee expected “many obstacles” in the draft federal budget bill for 2021.

A member of the Parliamentary Finance Committee, Abd al-Hadi Mohan al-Saadawi, revealed the size of the external and internal debts owed by Iraq, especially after the recent approval of the recent borrowing law, and he said in a press statement, that “the external debts owed by Iraq and established within (Paris Club, Kuwait’s debts and the Iraqi-Iranian war) reached More than 136 billion dollars. ”

And he indicated, “The total volume of debts increased after the increase in external borrowing after 2014 and until now, bringing the total debt to more than 160 billion dollars, most of which are external debts, and include a very high interest rate.” To declare the country completely bankrupt. ”

burathanews.com