The 2022 budget .. “ambiguity” surrounding the draft law and calls to amend the exchange rate

The 2022 budget .. “ambiguity” surrounding the draft law and calls to amend the exchange rate

2022-04-20 | 07:21

The 2022 budget .. ambiguity surrounding the draft law and calls to amend the exchange rateAlsumaria News –

A report is still awaiting the completion of the draft financial budget for the year 2022, hoping to include what the citizen aspires to, at a time when calls are rising for calls to restore the exchange rate of the dinar against the dollar to its previous era.

With calls from economists to amend the dollar exchange rate in the current year’s draft budget law, sending the draft to Parliament is still surrounded by “ambiguity”, after government statements indicated that the current government could not prepare a draft budget law.

economic researcherAli Al-JawadiHe stressed that one of the most important priorities of the upcoming budget, according to global oil prices, is to adjust the value of the dinar against the dollar, and to provide investment projects that contain unemployment among young people.

In an interview with Alsumaria News, Al-Jawadi said, “There are many priorities that the government and the legislature within the parliament should take into consideration when voting on the 2022 budget.”

And he indicated that “these priorities are parallel in terms of their importance in terms of their relationship to the life of the citizen, including adjusting the value of the Iraqi dinar against the dollar, in addition to all kinds of investments to attract unemployed youth, and the risks it creates, most notably drugs and crime.”
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Al-Jawadi added, “The thing that most affected the citizen’s life during the past year and harmed his living situation is the devaluation of the dinar against the dollar, and he is waiting for the next budget to adjust the value of the local currency with the rise in oil prices globally, and the economy gradually recovering, and the Central Bank announced that His hard currency assets rose comfortably.”

He pointed out that “returning the wheel of industrial and agricultural development should have priority in the current year’s budget, in addition to maximizing investment allocations for its development, providing additional resources to supplement the budget in the coming periods.”

He continued, “What we expect is that the fiscal deficit in the budget will be by a very small margin, as a result of two factors, the first of which is the rise in global oil prices and also the devaluation of the dinar, in addition to recent talkpetrol MinistryOn setting the speculative price of a barrel of oil in the budget at $50 a barrel, which means that there is a clear difference in the financial surplus between what is estimated and what is actually on the ground, and we may witness a supplementary budget as a result of these differences.

He stressed that “these conditions may be an opportunity for a bold start for the next government, and it will be the beginning of reform to advance the basic sectors and actually provide a decent life for the citizen.”

The economic expertSafwan QusayIt is likely that the 2022 budget will witness an increase in investment allocations, especially with regard to projects by Chinese companies.

Qusay said in an interview with Alsumaria News, “There are steps for OPEC and its partners in order to reconsider the quotas for member states that could contribute to increasing Iraqi exports, which in 2019 were more than 3 million and 880 thousand barrels per day, as for the return of the amount of Iraqi production. According to the current oil prices, it will give Iraq an income of no less than 120 billion dollars as a possibility available to cover public expenditures.

And he indicated, “The 2022 budget may witness an increase in investment allocations, especially with regard to projects by Chinese companies, and there is a strategic agreement with Chinese companies amounting to 10 billion dinars, so it is possible that the financial surplus will be allocated to transfer to the joint fund.”

Qusay added, “The government suggested that the estimated price of a barrel of oil in the budget would be $50, but we believe that this price is very low, and the concerned authorities should reconsider this price. Sovereign Wealth Funds and Chinese Enterprises.

He pointed out that “there is a need to reconsider the salaries of grades five and below, in order to confront the high prices, in addition to reviewing social welfare salaries and expanding the circle of those covered by more than 500,000 new people.”

He continued, “To support the local industrial and agricultural product, we believe that there is a need to have a subsidized dollar, whose price is different from the market price, and is allocated to import fertilizers, seeds and raw materials for local industries, in addition to reducing the tax base for these materials.”

The economist concluded his speech by saying: “The more the financial situation improves in the 2022 budget, the more possibilities there are for direct support, with the need for a representative of the regular private sector in the Council of Ministers to defend their rights and support mechanisms for them in a way that supports the economy and comprehensive economic reform.”