Monday Morning Iraq Economic News Highlights 6-12-23
Monday Morning Iraq Economic News Highlights 6-12-23
The House Of Representatives Votes On The Tripartite Budget Law, With A Value Exceeding $150 Billion
2023-06-11 Shafaq News/ The Iraqi parliament voted, early on Monday, on the federal budget law for the years 2023, 2024, 2025, after discussions that lasted for five days.
The value of the current year’s budget is 197 trillion and 828 billion Iraqi dinars (about 152.2 billion dollars), with a total deficit of 63 trillion dinars (48.3 billion dollars), while the items of the 2023 and 2024 budgets have not been published. LINK
Former Finance Minister: The Budget Is Lame And Disastrous For The Iraqi Economy
Money and business Economy News – Baghdad The former Minister of Finance, Hoshyar Zebari, confirmed that Iraq's tripartite budget, which was voted on by Parliament, is lame and disastrous for the country's economy.
Zebari said, in a tweet on Twitter, "Iraq's proposed budget for the years 2023-2025 is lame and disastrous for the country's economy, and unrealistic and wishful for the political blocs benefiting from corruption."
He added, "It has great injustice against the region's constitutional and financial dues, and this budget will lead to inflation and fluctuations in currency exchange and failure in managing money and the general economy."
The proposed budget for Iraq for the years 2023-2025 is lame and disastrous for the country's economy. Unrealistic and wishful for the political blocs benefiting from corruption. And there is great prejudice against the region's constitutional and financial dues. And this budget will lead to inflation and vibration in the currency exchange and failure in money management and the general economy.
Hoshyar Zebari (@HoshyarZebari) Views 86 06/12/2023 - https://economy-news.net/content.php?id=34692
Parliament Approves A Very Dangerous Article In The 2023 Budget, Which Includes The Theft Of $100 Billion
Money and business Munqith Dagher, Director of the Middle East at the Calop International Foundation, confirmed that 100 billion dollars will be stolen from Iraqi money by adding an article in the 2023 budget, which includes extinguishing advances.
Dagher said in a tweet on Twitter, and “Al-Iqtisad News” followed it, “In a call with Dr. Magda Al-Tamimi, who worked in the Finance Committee for a long time, she confirmed to me that the accumulated amounts of advances that are to be extinguished according to this paragraph in the budget amount to 105 trillion dinars until 2021, which means now nearly $100 billion.
Dagher described this procedure as a calamity, saying, "I mean, if we slapped a thousand years on this calamity, it is not enough, because this amount is intended to waste the blood of the tribes and extinguish it with the stroke of a pen."
He continued, "They will give the Minister of Finance the authority to allocate one hundred billion dollars of Iraqi money to compensate for the advances that were (looped) and no one knows their fate."
Views 152 06/12/2023 - https://economy-news.net/content.php?id=34695
The Iraqi Parliament Votes On The Financial Budget... And A Record Deficit Of 49.5 Billion Dollars
Political Scene Monday 12 June 2023 (151 views) sky press Iraq's parliament on Monday approved the 198.9 trillion dinars ($153 billion) budget for 2023, which includes record spending on a growing government wage bill and development projects aimed at improving services and rebuilding infrastructure ravaged by neglect and war.
According to lawmakers and a budget document, the budget deficit is estimated at 64.36 trillion Iraqi dinars ($49.5 billion), a record high and more than double the last budget deficit recorded in 2021.
Lawmakers said the budget was based on an oil price of $70 a barrel and expectations for 3.5 million barrels of oil per day to be exported, including 400,000 barrels per day from the Kurdistan region.
The budget sets the exchange rate for oil revenues in US dollars at 1,300 dinars to the dollar. This will remain in effect until 2025, but it will be subject to adjustment, and it includes the price of oil, which Iraq uses in light of its almost complete dependence on oil revenues.
The budget adds more than half a million new public sector jobs, contradicting the recommendations of many observers who say Iraq should tighten fiscal policy.
More than a million new workers have been added, including contractors, daily employees and full-time employees, said Mohamed Nouri, a member of the Parliament's Finance Committee.
Ahmed Tabaqjali, a visiting fellow at the Middle East Center at the London School of Economics, estimated the number of new hires at about 600,000, which he said would raise the total cost of public wages and pensions to more than $58 billion (76 trillion dinars). ).
“The more you spend this kind of money, the more vulnerabilities you have,” he said. The price of oil has to go up more and more just to keep spending...and it will lead to more and more borrowing.”
The International Monetary Fund said in a note dated May 31: The increase in the public sector salary bill will contribute to the escalation of the deficit and financial pressure, unless there is a significant increase in oil prices.
To break even, the fund stated that Iraq asked for an oil price of $96 per barrel, while the average price was $71.3 per barrel in May.
"A tighter fiscal policy is needed to enhance flexibility and reduce the government's dependence on oil revenues while protecting important social spending needs," the International Monetary Fund said.
Iraq's budgets are supposed to be approved before the start of the year they cover, but they are often delayed or not passed at all due to instability and political differences.
The budget takes steps to address the long-standing differences between Iraq and the autonomous Kurdistan region, as oil revenues are to be deposited in an account supervised by the Central Bank of Iraq.
Baghdad had previously had no say in Kurdistan's spending of oil revenues, as the region unilaterally exported crude oil via Turkey, despite Baghdad's objections.
But Kurdish officials were forced to negotiate with Baghdad after Turkey halted crude exports in April when an international arbitration ruling ruled them illegal.
Under an agreement concluded between Baghdad and Erbil in April, the Iraqi state oil marketing company (SOMO) will have the authority to market and export crude oil produced by fields controlled by the Kurdistan region.
Oil flows have not resumed, although Baghdad asked Ankara to do so on May 11. LINK
On The Morning Of Approving The Budget.. The Rise In Dollar Prices In Baghdad And Kurdistan
2023-06-12 Shafaq News/ The exchange rates of the US dollar against the Iraqi dinar rose today, Monday, in the main stock exchange in the capital, Baghdad, and in Erbil, the capital of Kurdistan Region.
Shafaq News agency reporter said that the central Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded this morning, an exchange rate of 146,600 dinars for every 100 dollars,
While the prices recorded on Sunday morning 145900 dinars.
The buying and selling prices also increased in exchange shops in the local markets in Baghdad, where the selling price reached 147,500 dinars, while the purchase price reached 145,500 dinars.
In Erbil, the capital of the Kurdistan Region, the price of the dollar also increased, as the selling price reached 146,700 dinars, and the purchase price was 146,650 dinars for 100 dollars.
And the Iraqi parliament voted, at dawn today, Monday, on the federal budget law for the years 2023, 2024, 2025, after discussions that lasted for five days.
The value of the current year’s budget is 197 trillion and 828 billion Iraqi dinars (about 152.2 billion dollars), with a total deficit of 63 trillion dinars (48.3 billion dollars), while the items of the 2023 and 2024 budgets have not been published. LINK
International Monetary Comments On Iraq's Budget And Re-Warns Of "Inflation" In The Currency
Economy Baghdad today – Baghdad Today, Monday, the American "Financial Post" newspaper reported a warning that it said was issued by the International Monetary Fund to the Iraqi government regarding the budget in its current form after its approval after four continuous days of deliberation and political problems between Baghdad and the Kurdistan region of Iraq.
The newspaper said, according to what it translated (Baghdad Today), that "the Iraqi government under the administration of the current Prime Minister, Muhammad Shia'a al-Sudani, passed the" largest budget "in the history of Iraq, amounting to 153 billion US dollars," explaining that "the International Monetary Fund issued a warning to the Sudanese government on the atheist And the 30th of last May about the government's spending of such large sums, given the current economic conditions.
The newspaper pointed out that "international monetary concern is due to fears that large government spending will lead to"inflation" in the Iraqi currency, which in turn leads to a spiral of economic deterioration affecting the future of the country, according to its description.
It is noteworthy that Iraq recorded a decline in inflation rates during the month of April, which reached one percent, with the central bank heading towards purchasing large quantities of gold to support the local economy.
For his part, the Iraqi Central Bank announced that the country has become in the thirtieth place internationally with the quantities of gold reserves stored. LINK
Financial Expert For / Nina /: An Investment Budget At A Rate Of 48 Trillion Dinars Will Contribute To Achieving More Than 600 Service Programs
Monday 12, June 2023 | Economical Number of readings: 19 Baghdad / NINA / - The financial and economic expert, Safwan Qusay, confirmed that an investment budget at a rate of 48 trillion dinars will contribute to achieving more than 600 service programs.
Qusai said in a statement to the National Iraqi News Agency ( NINA) .): “Passing the budget for three years means that the government has estimated the level of spending for the next three years at a rate of $450 billion, of which $300 billion will go to consumer items such as employee dues and other items,” indicating :
"The process of regulating the relationship between the ability of the Iraqi private sector and the public sector to meet the requirements of employees and retirees will contribute to mobilizing the private sector and expanding its circle of activity to meet local consumption."
He added: “The draft budget and monitoring public spending through an integrated administrative financial system can monitor spending management, whether in the governorates or Baghdad, through an unified electronic system, which will contribute to the possibility of tracking the movement of these funds, preventing Cases of corruption from appearing, and achieving the government program.”
The economist indicated that "an investment budget at a rate of 48 trillion will contribute to achieving more than 600 service programs," indicating that each ministry has included its service projects within the government's priorities and funded them within clear contracts from parties that can organize projects. on the ground, which will contribute to changing the form of government performance, given that the government can rehabilitate service units and make them productive to create an appropriate return for government institutions.
He stressed the need to draw up an accurate three-year economic map to guide investors that there are opportunities for growth in all sectors, and to identify investment opportunities towards these opportunities.
And he stressed the need to develop an accurate economic map for three years to guide investors 8
Al-Sudani On The Tripartite Budget: We Will Review The Parliamentary Amendments And Match Their Government Goals
2023-06-12 Shafaq News/ On Monday, the Iraqi Prime Minister, Muhammad al-Sudani, blessed the approval of the "triple budget" by the Parliament, while confirming that his government will review the parliamentary amendments that were made to it and the extent of their conformity with the government's goals.
Al-Sudani said in a statement received by Shafaq News Agency, "We extend our congratulations to our people, on the occasion of approving the federal general budget law for the years 2023, 2024, and 2025, and we also express our thanks to the presidency and members of the esteemed Parliament, for the efforts made and the keenness to approve the budget."
He added, "The budget that the Council of Ministers voted on last March 13 took into consideration priorities affecting the basic requirements of the individual and the family, and the livelihood of citizens," stressing that it "seeks to meet their aspirations in what they expect from the government in terms of services, construction and infrastructure projects."
And Al-Sudani stated, "Our government based the presentation of the tripartite budget on the clear reform vision that we adopted in the government program, which is a procedural and scientific step that carries solutions to the phenomenon of recurring or failing projects, which has accompanied governments over the past years. This vision also confirms the reduction of operational spending and the development of revenues." non-oil and private sector support.
He continued, "Based on this, the government will work to review the items that have been amended in the budget, and study the extent of their conformity with the government's vision and objectives approved in the ministerial curriculum approved by Parliament."
He concluded by saying, "We highly appreciate all the efforts that have been made to approve the budget, and we especially mention the members of the Parliamentary Finance Committee and the Strategic Planning and Parliamentary Federal Service Committee, for what they have provided over the past period."
And the Iraqi parliament voted, at dawn today, Monday, on the federal budget law for the years 2023, 2024, 2025, after discussions that lasted for five days.
The value of the current year’s budget is 197 trillion and 828 billion Iraqi dinars (about 152.2 billion dollars), with a total deficit of 63 trillion dinars (48.3 billion dollars), while the items of the 2023 and 2024 budgets have not been published. LINK