KTFA:

Don961:  Dollar exchange rate and income tax, with new statements by the Iraqi Minister of Finance

2021-03-02  Yes Iraq - Baghdad

 The Minister of Finance, Ali Abdul Amir Allawi, stressed, on Tuesday, the focus of the white paper on introducing the principle of economic pricing and streamlining of expenditures, and while noting the commitment to pay the salaries of employees on time, he emphasized submitting proposals on the amendments made in the 2021 budget.

Allawi said in an interview that "Iraq has gone through a stifling financial crisis, as state revenues in 2020 have become the lowest since 2014," indicating that "the white paper began not only with the rationalization of expenditures, but rather focused on the known sources that require reform, fundamental change and lean expenditures, and the principle was introduced." Economic pricing because the main inputs are subsidized, and this reflects the pricing revenues of oil inputs to distribution companies and refineries companies.

He added, "Iraq has started building al-Qaeda and developing it in the future in order to reduce our dependence on oil revenues," noting that "the ministry is trying to solve decades-old accumulated problems that cannot be neglected without addressing the joints affected by these wrong policies, as this requires a large package of reforms." .

Allawi continued, "We cannot proceed with an economic development and put Iraq on a new economic path without addressing the problems," explaining that "the white paper focused on addressing 600 measures that occur in 60 specific packages within 3 to 5 years, and are applied to all major state joints from Ministries to bodies that require persistent and continuous work.

He pointed out that "it is not possible to fix a certain thing without knowing its impact on other sectors, as it is a complex network and the method of dismantling it on a regular basis needs specific timings."

Allawi stressed, "There are obstacles to the implementation of reform because every reform will affect and affect certain parties," noting that "despite our conviction as a state and as a people of the necessity of reform and putting Iraq on track, without total reliance on petroleum materials, that requires that we face difficulties and provide solutions that do not Greatly affects the fragile layers ”.

He added that "these measures will face reactions and perhaps resistance, for example we cannot avoid the necessity of completing all government institutions," noting that "in the 21st century, Iraq cannot remain late, and the philosophy and policy of the private sector cannot be adopted and supported if the obstacles are not removed." Existing in each of the joints, which must be disassembled in a scientific and objective way, which can affect the short stage, but on a medium and long term, as all of them are necessary.

Allawi continued that "until now, we do not know the final form of the general budget for 2021, which has not yet been submitted to the vote," noting that "according to our contacts, the budget items have not changed much, especially after the agreement that we reached with the Finance Committee in the House of Representatives, as Reforms and changes requested by the committee to include a large part of the contracts in the budget that does not exist in it.

Allawi stressed, "Regarding the deficit, it has fallen to about 30 trillion dinars," explaining that "this is within the capabilities of the government funded locally and abroad without affecting the public debt without affecting the ceilings."

He continued, "With regard to the price of oil, when the government presented the budget, the price of a barrel of oil was $ 42, now it has changed to $ 45, and this price is very reasonable and final," adding that "indications are that the price will be relatively conservative, as the real revenues will be more, because they give us some kind." Flexibility to shift resources to points where there was scarcity. ”

Allawi stated that "the ministry has basic projects that have been developed, especially in support of the poor and support for the treatment of Corona and social welfare, but there are other detailed issues, but in general are the reductions that the House of Representatives have entered into the budget will be presented in an acceptable way," noting that "the main cuts are how to deal with Delays, the ministry has arrears that must be met. However, the Finance Committee in the House of Representatives decided to postpone and leave for periods of time. Likewise, with regard to internal debts, these items are not considered as a fundamental disagreement, but a procedural one.

Allawi stressed, "We expect that the House of Representatives will place an income tax on all salaries and all allocations, and we do not have any forms. This is another way, and this will lead to a reduction in the expected revenues, but in light of the circumstances we are going through, this change is reasonable, I mean within reasonable limits."

Allawi added that "the Finance Committee did not give us the draft budget, but rather ideas and some proposals and points on which the debate occurs," explaining that "the budget now in front of the House of Representatives, we presented it as a government, as amendments will be made by taking the viewpoint of the position of the Finance Committee as well as the additional positions that we presented as a ministry." Finance".

Allawi stated that "the budget was presented by the government and it is now before the House of Representatives, and the Finance Committee had some amendments, but these amendments must be presented to the representatives as a whole until they are voted on." "Woody atmosphere is good."

Allawi pointed out that "the dollar exchange rate is a government decision linked between the Ministry of Finance and the Central Bank," explaining that "this price that we reached after months of study and months of discussions and even controversy with local and international parties, this price is very important and cannot be changed daily according to the desire".

He continued that "the exchange rate came according to our indicators and studies in discussion with the Central Bank and with the International Monetary Fund and with other Iraqi parties, including the heads of the blocs and the House of Representatives," considering that "this price is reasonable and there is a great response regarding the impact on government revenues and controlling the auction process, as the reserve increased." "In the central bank, after we were facing the possibility of a major crisis with respect to cutting, the foreign currency is present at the central bank, and we have not changed the marketing process."

He added, "The markets have accepted the current exchange rate, and in the coming years it will give incentives to the private sector, stop the import rate, and strengthen the reserve."

He stressed that "there are parties who have benefited from the exchange rate change and others have been affected, and the government is trying to reduce the damage, especially the contractors who contracted with the state in dinars, and there are also contracting contractors in dollars, and they may be priced in dollars and formally presented in dinars, so there must be some kind of balance."

Allawi stated that "the beginning of the current month, the financial flow from the increase in the price of oil, will bring us back to the stability of salaries in the timing," stressing, "We are obliged in advance and there are no options and no trick in the hand."

Allawi expected that "during the current month of March, the distribution of salaries will be according to the times and according to the incoming shipments."

Allawi added, "I previously talked about the need to amend the Financial Management Law because 1 on 12 is not possible to be a base for managing the country's finances, especially a country like Iraq in light of crises," pointing out that "between the 2019 and 2020 budget there was a 50% decrease in revenues from It is not possible to adhere to this way, but there are other ways, which is to give the Council of Ministers the right to manage the state’s finances in accordance with certain controls.

Allawi stated that "there are no technical issues that impede voting on the budget, but rather regarding the region's share," stressing that "the ministry requests that it be given a financial budget certified and approved by Parliament to know the final road map for the country."

And the minister indicated that "the only thesis that exists now is the government's position that we estimated with the budget and presented it to the House of Representatives," noting that "the negotiations in which finance are taking place are not a party to it."

Allawi said that "Iraq is committed to repaying foreign debts in the timing," explaining that "Iraq is not much in debt, such as some parties, but that the external debt relative to the size of the economy is reasonable."

Allawi stressed that "the foreign debts amount to 60 billion dollars distributed over the years and the way they are arranged," noting that "Iraq's debts are most of the previous ones to governments and international institutions, not to companies or commercial establishments, so their cost is relatively good and the repayment periods are relatively long."

He pointed out that "the external debt is linked to most projects, and there is only debt from the IMF for the purpose of helping and supporting the budget, but this has been paid," explaining that "Iraq does not need monetary financial support. Perhaps certain periods we need monetary support to the budget, so international parties can help." Iraq is in the process of completing a reform project, but in general Iraq borrows from abroad for the purpose of financing projects, which, if successful, will be paid through their revenues.

He pointed out that "the internal debts are mostly in the hands of government institutions such as banks and a central bank, so it can be rescheduled," noting that "the internal debts amount to 70 trillion dinars and are paid."

Allawi pointed out that "the budget includes all issues related to deletion and creation, and the decision remains in the last for the House of Representatives," noting that "lecturers, doctors, and relatives of the martyrs and other similar matters were included in the budget," indicating that "the country is going through a financial crisis and that the House of Representatives has decided that these be scheduled Implications ”.

He stressed that "Iraq has an obligation according to the licensing contracts and there are arrears that should have been paid and that were supposed to be paid and some of the arrears returned to them so that the state would be responsible."    LINK

Courtesy of Dinar Guru

Frank26  The Iraqi dinar is pegged to the American Dollar.  You may say no it's not.  Trust me it is electronically.  It's already 1 to 1.  I know that's a bold statement to make...the Iraqi dinar is about to play fair with the American dollar.  It's pegged to it.  It has no choice.

Petra  ...if they were going to have a budget at 1450 or even 1190 they'd have done it.  That's what's key to understand.  They are waiting for the rate because they know that's what they need to make all the changes.

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Frank26:  THE PROTECTION GROUP LLC/TRUSTS.....& DESSERT !!!

3-2-21......

Intel starts about halfway through the video

https://www.youtube.com/watch?v=BGOKn50tmSs