Al-Kazemi’s advisor, Mazhar Muhammad Salih: The cash flows are reassuring, and the general budget does not need borrowing
Al-Kazemi’s advisor, Mazhar Muhammad Salih: The cash flows are reassuring, and the general budget does not need borrowing
March 10, 2022 – 4:51 PM
Today, Thursday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected to achieve cash benefits of 20 billion dollars due to the rise in oil prices, while he ruled out resorting to borrowing.
Saleh said, “The federal financial policy is implementing, until this moment, the effective Financial Management Law No. 6 of 2019 amended, which requires disbursement at a rate of 1/12 of the total continuous actual expenditures made in the 2021 budget.”
He explained, “Despite partial borrowing of 15 percent of the total planned deficit in the 2021 budget of 29 trillion dinars, the financial situation and its expected indicators during 2022 indicate a high average for a barrel of oil, not less than $100 per barrel compared to the revenues of the year’s budget.” 2021, whose average annual oil revenues are estimated at less than $70 a barrel.
He added, “Accordingly, net expected financial surpluses of not less than 20 billion dollars in the event that the exchange continues at a rate of 1/12 of last year’s budget, and therefore the prevailing cash flows will be reassuring and there is no need to borrow in all its forms.”
He stressed that “the surplus reserve financial resources can be allocated for the purposes of supporting the stability of the budget in the coming years in the face of unknown potential fluctuations in the global oil market.”
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