Al-Kazemi’s advisor: The government has successfully passed the most difficult exam in the modern history of Iraq
Al-Kazemi’s advisor: The government has successfully passed the most difficult exam in the modern history of Iraq
06/20/2021 08:40:30
Adviser to the Prime Minister, Mazhar Muhammad Salih, stated that despite the severity of the economic and financial difficulties that afflicted the country, the government was able, within a year of its life, to manage the financial and economic file well, which in turn was reflected in the management of the health file in light of the pandemic. Corona.
Saleh said, in a press statement, “The country’s economic file during a year of the life of the current Iraqi government faced double difficulties imposed by the health crisis as a result of the Corona pandemic, the closure of the local economy and the disruption of many private sector activities, accompanied by a severe government financial crisis that lost the actual current government expenditures more than 60% of its revenues in the year 2020 compared to the year 2019.”
And he indicated that “in the face of these difficult deflationary conditions in the economy, and in order to finance current spending, especially salaries, wages, pensions, social welfare, and governing obligations, the House of Representatives agreed that the government would expand the base of internal borrowing to finance the deficit in actual current spending, about 25 trillion dinars funded by the government banking system.” And the Central Bank of Iraq strongly and fully supported it in exchange for treasury transfers under the borrowing laws, a rescue deal that enriched the country from resorting to external borrowing.
He added that “the government was able to manage the epidemiological file with all the health capabilities available to protect public health tirelessly day and night, as well as its ability to prepare and pass the federal general budget law for the year 2021 in cooperation with the legislative authority, which included appropriate allocations in the investment budget for new and ongoing projects that accounted for approximately 23 % of the total expenditure in the budget, in order to cover the expenses of those projects.
And Saleh continued: “The successful exit from the bottleneck in the health and financial double crisis for the year 2020-2021 with the recovery of the oil markets and the restoration of the general budget to reassuring cash flows; we can say that the features of crossing the cycle of oil assets that reached the bottom and crossing the epidemic crisis that reached the top, are the test.” The most difficult in Iraq’s modern political history, after the country successfully crossed the double security and financial crisis that occurred in 2014-2017.
He concluded by saying: “These are the harsh lessons in the government’s management of the economic file in crisis conditions, which ended with government success and with the least possible losses to preserve the safety and stability of our country and people.” Hazem
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