MilitiaMan "A Timely Piece from the UST" Tuesday PM 4-19-2022

KTFA:

MilitiaMan:  U.S. Department of the Treasury

Office of Public Affairs

Press Release:             FOR IMMEDIATE RELEASE

April 19, 2022

Contact:                      Treasury Public Affairs; Press@Treasury.gov  

READOUT: Under Secretary Brian Nelson’s Meeting with Iraqi Deputy Prime Minister and Minister of Finance, Ali Allawi

WASHINGTON – Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson met with Iraqi Deputy Prime Minister and Minister of Finance Ali Allawi on the margins of the IMF-World Bank spring meetings.

They discussed challenges facing Iraq, including inflation and pressure on supplies of food and other commodities as spillovers from Russia’s invasion of Ukraine – food prices in Iraq have increased by double digits since the start of the war. Under Secretary Nelson and Minister Allawi also discussed economic reform efforts and fighting corruption. 

MilitiaMan:  I'll bet there are many others that were privy to the meetings.. The food law, as they are calling it is a necessity of the citizens. They have been talking about the GOI and the 2022 Budget, i.e., a new exchange rate too.. imo..

A new exchange rate is imo all that is needed to curb inflation and bring purchase power.  We know they talked about the  present government can and will address the budget. Thus, the meeting with the IMF-World bank and others imo..

Lets see what the day(s) bring. I suspect they'll re affirm the government's position with respect to the presidencies.

Then, i'll look for the Finance Minister / CBI to have a chat.. jmtc..

I like this a lot. It is a very timely piece from the UST, get my point? lol.. The "" many others that imo involved, were very high up in the food chain.. Very!!! lol... ~ MM

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Samson:  The delay in approving the budget stops projects and confuses economic activity

Specialists in economic affairs renewed their warning of the negative consequences resulting from the delay in approving the general budget law, especially on the investment aspects, stressing the need to reach “political” agreements that would pass the budget, and work to double the items that could contribute to the eradication of poverty and unemployment. Increasing rates of development and urban projects. 

The economic warnings were met with a parliamentary proposal that called for transferring the funds allocated to the Food Security Law to the Budget Law, and working to pass it as quickly as possible because its provisions are linked to the needs of the people.

 Member of the Iraqi Economists Association, researcher Miqdam Al-Shaibani, sees the possibility of a delay in economic activity in Iraq due to the lack of approval of the budget law, as well as a state of stagnation in the national economy, especially since the budget is the government’s annual plan to implement its service and investment programs, and its delay means that projects have stopped Service and investment projects, especially infrastructure projects for electricity, water, roads, bridges, health and education.

Al-Shaibani pointed out that the negatives resulting from not approving the budget law do not stop at the limits of delaying projects only, but also cross them to reach dangerous economic levels because spending is determined at a ratio of 1/12 according to the state’s financial management law until the budget is approved, meaning that spending will be determined according to the conditions of the year. The previous financial, and this means the absence of new projects

 In addition to the disruption of old projects that need financing, which will lead to high rates of unemployment and poverty and send unreassuring messages to the private sector and investors, and thus the delay in approving the budget may lead to stagnation economic.

 Food Security Law 

The economic researcher believes that sending “the law of emergency support for food security and development to the House of Representatives does not come within the powers of the caretaker government, and if the current government has the power to send laws, then sending the federal general budget for the year 2022 is more important than sending the law of emergency support for food security.”

Al-Shaibani pointed out that “the Food Security Law, with its paragraphs, is another operational budget that is added to the consumption expenditures spent by successive federal governments,” noting by saying, “I think that the adoption of the emergency support law for food security and development is an elimination of investment and development in Iraq, as Most of the exchange doors in this law are consumer goods, and at the current stage we need to support production and investment, and in the Federal General Budget Law, this matter can be achieved through the investment budget.”

clear financial aspect

The economic warnings were met with parliamentary support expressed by Representative Laila Mahdi al-Tamimi, who confirmed to “Al-Sabah” that “the food security law, which the government sent to the House of Representatives, contains a financial aspect, and according to the system, laws that contain a financial aspect cannot be implemented.” Send from the caretaker government to the Council  Representatives.”

The representative indicated, “The Food Security Law is a clear violation, and it would have been more appropriate to send the General Budget Law, the paragraphs of which affect the life of the citizen directly and significantly, as many segments are waiting for the legislation of a law.” budget.”

The MP pointed out that despite the need for the government to send a draft budget for 2022, however, “the Food Security Law is important for a certain stage, during which the needs of a large social segment are addressed, especially the poor, who are in dire need of the Social Protection Law, and therefore focus must be placed on On this slide to achieve food security to her".

Al-Tamimi suggested transferring the funds allocated to the Food Security Law to the 2022 budget to address lagging projects, as well as address other problems, such as free lecturers and other problems. Economic.

The financial advisor in the Prime Ministry, Dr. Mazhar Muhammad Salih, pointed out during a previous interview with “Al-Sabah” that “one of the alternatives that the government has resorted to, is its submission of the emergency food aid bill with a spending ceiling of 35 trillion dinars, which includes subsidizing the ration card. Social welfare programs, subsidizing the prices of crops such as wheat, rice and rye, and a grant of 100,000 dinars, as well as covering the activities of investment projects   link