The government describes 2020 as a “bitter and lean year” and tends to borrow from citizens
The government describes 2020 as a “bitter and lean year” and tends to borrow from citizens
2020/11/20 10:59:53
{Baghdad: Al Furat News} Mazhar Muhammad Salih, Advisor to Prime Minister Mustafa Al-Kazemi for Financial Affairs, revealed a tendency for the federal government to borrow from citizens and use their savings to fill the fiscal deficit in the 2021 budget, and consider this as a public debt, instead of government banks.
Saleh said in a press statement regarding the draft fiscal budget bill for the next year and their features, financing and deficit, that “Iraq is going through a difficult financial situation, especially since oil export revenues constitute 50% of the moderate and not high revenues of the country, which has lost many of its resources.”
He added, “The budget depends on 93% of oil revenues during the past years, especially as it is committed to OPEC decisions to reduce production, while 2020 was a lean year for the financial policy of the country and the state that tried to secure salaries until the end of the year, adding that 2021 may be General Financial discipline to control the operating budget, its entries and exits, in a very large way, as it absorbs about 80% of fixed expenses.
And he continued his speech by acknowledging the existence of a financial deficit in the budget next year, and that its financing will be from several internal and external parties, taking into account not to borrow from government banks, especially that there is an international financial alliance that has the willingness to deal with Iraq, and it will have an impact on supporting the country, supporting it financially and sustaining Financial and economic momentum “according to his perception”, pointing out that this “is a very important and vital issue, especially for obtaining aid and soft foreign loans.”
He added that the other approach of the government in bridging the deficit in the budget is to seek the help of the public and borrow from the savings they have, not from the government financial apparatus and its banks.
“Yes, perhaps this time, borrowing from the public will be a public debt,” Saleh asserted, noting that there is no way to fill the deficit, either by improving oil prices to obtain additional revenues or resorting to borrowing.
Regarding what the government is planning regarding its financial policy towards the salaries of citizens, he said, “I hope that it will be secured next year without delay, and this must be carefully planned for this basic issue, especially since salaries and wages constitute the livelihood of 50% of the Iraqi population.”
Al-Kazemi advisor added that there are “good preparations to complete the budget, and when it is presented, everything will become clear, deficit, sources of financing, spending, and revenues, and to maximize non-oil revenues, especially since there is a strong trend to take its field in this regard and not by 6% or 7%, maybe up to 25%, and this is an excellent goal and step. Once that ceiling is reached by maximizing resources, there will be improvement in facing the deficit, the size of which is unknown, because Parliament will also work to amend it.
And he expected that “the government will present the budget to Parliament during the next few days, but this depends on the ministries’ determination of their revenues, expenditures, operational locations – and investment in the budget.”
And if there were parties seeking to obstruct the presentation of any project by the government, Saleh said that there are “political struggles”, especially whenever the election date approaches, which is normal in countries, but we hope everyone will cooperate for the sake of the Iraqi people.
alforatnews.com
