Saturday Evening Iraq Economy News Highlights 6-4-22
Saturday Evening Iraq Economy News Highlights 6-4-22
Federal Financial Management In Iraq: Crises Of Money, Politics, And The Budget
Saturday, 06-04-2022, AM 12:02 Karar Al Asadi
By: Dr. Emad Abdel Latif Salem Why do we make laws, and not enforce them?
Why do we set laws, then begin to circumvent them with alternative laws, contradicting them, and violating their provisions?
Why do we set laws that specify binding “timings” for preparing the federal general budget (for example), and we do not abide by these timings, or does an authority (of the three authorities) take decisions, or legislate laws that intersect with it?
How useful would it have been for us, if the provisions of the Federal Financial Management Law No. (6) of 2019 were implemented instead of this financial-political “nonsense”, which everyone has plunged into its noise, its “fuss”, and the lack of it now?
Who is legally (and mandated) legally (and constitutionally) qualified to file lawsuits against “the authorities” responsible for the severe consequences of violating the provisions of this law, prosecute them, and put them behind bars?
Those who are interested should answer questions like these, because I am not “legally” qualified (by virtue of my jurisdiction) to answer them.
Below I will present to you the most important “provisions” of the financial management law referred to, which I believe is the failure to comply with it, which led us to the financial - living - political dilemma - the consequences of which we are now experiencing. Federal Financial Management Law No. 6 of 2019
(articles related to the current political-financial “blockages”)
1- Article -4- Second: “The annual budget starts from 1/1 and ends on 31/12 of the same year. The Federal Ministry of Finance has the right to prepare a medium-term budget for a period of three years, to be submitted once, and it is legislated, and the first year is obligatory, and to the Council of Ministers based on the A proposal from the Ministries of Planning and Finance to amend it for the second and third years, with the approval of the House of Representatives. “I don’t know why such a budget was not prepared (or put into practice), knowing that there is a “strategy” for the general budget that is prepared every three years?
2- Article -6- Fourth: “The deficit in the planning budget may not exceed 3% of GDP.” That is, if the gross domestic product is $200 billion, then the budget deficit should not exceed $6 billion (what Approximately 9 trillion dinars) .. and this has not been adhered to in any budget law for twenty years.. and for information only, the total planned deficit in the federal general budget for the year 2021 is 28.672 trillion dinars (equivalent to three times the deficit specified in the Administration Law effective finance).
3- Article -11-: “The Council of Ministers shall discuss, approve, and present the draft budget law to the House of Representatives, before mid-October of each year.” If this is the case, then how was the date of the early parliamentary elections determined, so that the early parliamentary elections would not be held? Will we even have a parliament in mid-October 2021? Why did no authority (or party) object to this?
4- Article -8- Second: The federal general budget draft law includes the following:
D- “An emergency reserve for a fiscal year, not exceeding 5% of the total estimated expenditures in the budget (both commercial and investment), for emergency and unexpected situations that occur after the issuance of the The Federal General Budget Law... If this "reserve" was present in the 2021 budget... would it have been a possible (and sufficient) alternative to the "Emergency Support Law for Food Security and Development"?... If this "reserve" did not exist, then the calamity greatest.
5- Article -13- Third: “In the event that the draft general budget law for a particular fiscal year is not approved, the final financial statements for the previous year shall be considered the basis for the financial statements for this year, and they shall be submitted to the House of Representatives for the purpose of approval.”
6- Article -18- Second: “In the event of a law entailing the disbursement of sums on the general budget, its application should be from the following year, in order to make the necessary allocation to it.”
7- Article 19- Second: “When the actual revenues exceed the estimates in the general budget law for the fiscal year, and after covering the actual deficit (if any), the surplus is provided for use in the budgets of the following years in a sovereign fund.” I do not know (personally) that Whether this "sovereign fund" existed or not, but I admit that I heard some "officials" on this subject, talking about it, for many years.
8- Article -19- Third: “The Council of Ministers, when declaring a state of emergency, may submit to the Council of Representatives a draft law to increase spending.”
9- Article -20- First: “The Council of Ministers may use the emergency reserve allocations to cover urgent, unexpected and emergency expenses that were arranged after the issuance of the Federal General Budget Law, and were approved by the Council of Ministers based on a proposal from the Prime Minister or the Minister of Finance.”
I think (and I may be wrong, of course) that the implementation (or application) of Articles 19 and 20 above may intersect with the Federal Court's decision regarding the powers and duties of the "caretaker" government... not to mention the responsibilities and limitations of declaring a "state of emergency".
Finally, I hope that there will be sound, wise and efficient financial-economic solutions that take into account the interests of the poorest and most vulnerable segments of the population, away from the useless political “clownism” in these very difficult and dangerous circumstances, from which Iraq is suffering from severe pressures now. , despite the large (and unprecedented) revenues from crude oil exports.
(Source: Federal Financial Management Law No. (6) of 2019, Al-Waqa’i Al-Iraqiya newspaper, No. 4550, August 5, 2019) http://non14.net/public/147808
Iraq Ranks Second.. A Report Identifies 10 Economies That Will Grow At The Highest Pace In 2022
Economie 2022-06-03 | 06:31 5,264 views Forecasts prepared last April showed that the global economy is expected to grow by 3.6% this year, and this comes in light of the pressures it is facing.
And Statista, citing data from FMI and the World Economic Outlook, identified ten economies in the world that are expected to grow at the highest pace in 2022, and the list included 3 Arab countries.
According to a graph by "Statista", a German company specializing in market and consumer data, the Iraqi economy will grow at a rate of 9.5% this year and will rank second in the list after Guyana, which will lead the world's economies in growth, as its economy is expected to grow by 47.2%.
It comes in third place Kuwait(8.2%) and then India(8.2%), followed by Saudi Arabia (7.6%), and then Panama(7.5%), Niger (6.9%), and laterThe Philippines(6.5%), Falcongo (6.4%), and then Bangladesh (6.4%). LINK
Global Oil Prices Make New Gains
Economie 2022-06-04 | 01:30 1,005 views Oil recorded its sixth weekly gain after the highly anticipated OPEC + meeting achieved a modest increase in production, continuing concerns about widening supply deficit levels in the markets.
West Texas Intermediate crude rose to settle above $118, achieving a weekly gain of 3.3%, while Brent crude ended trading at $121.35, with gains of $3.74, or 3.18%.
On Thursday, the OPEC Plus alliance agreed to increase production during the months of July, and at the same time, job growth in the United States exceeded estimates, indicating continued economic growth that will boost demand for crude and refined products, according to a report published by "Bloomberg" agency. LINK
Dollar Exchange Rates In Local Markets
Economie 2022-06-04 | 03:32 Source: Alsumaria news 1,766 views Today, Saturday, the dollar exchange rates witnessed stability in the local markets.
The selling prices of the dollar were 148,250 dinars per 100 dollars, while the purchase prices of the dollar were 148,150 dinars per 100 dollars.
Earlier, he decided Central Bank of Iraq Adjusting the exchange rate of the dollar against the Iraqi dinar, as the purchase price of the dollar from the Ministry of Finance amounted to 1450 dinars, and the price of selling it to banks was set at 1460 dinars per dollar, while the selling price to the citizen was 1470 dinars per dollar. LINK
Dollar Exchange Rates Against The Dinar
Economie| 10:17 - 04/06/2022 Baghdad - Mawazine News The dollar exchange rates witnessed stability, today, Saturday, on the Iraqi Stock Exchange.
And the selling prices of the dollar were 148,250 dinars per 100 dollars, while the purchase prices of the dollar were 148,150 dinars per 100 dollars. https://www.mawazin.net/Details.aspx?jimare=195408
Parliamentary Finance Resolves The Controversy Over The Budget
Political | 11:11 - 04/06/2022 Special- Mawazine News The Parliamentary Finance Committee resolved, today, Saturday, the controversy over the presentation or approval of the budget law.
Committee member Jamal Kougar said in an exclusive interview with "Mawazine News", "The government cannot submit the budget law in accordance with Legal Article 62, which gives presenting the budget an exclusive authority for the official government and not for conducting business."
He added that "the continuation of the exchange will be 1/12 until the formation of the government," noting that "it is not possible to control the profits of oil revenues from their exploitation in suspicion of corruption."
He pointed out that "corruption has corroded state institutions and reached a high level." Ended 29 / AD 99 https://www.mawazin.net/Details.aspx?jimare=195416
US-British UN Affirmation Of Support For Iraq
Political | 09:22 - 03/06/2022 Baghdad - Mawazine News Friday, the United Nations, America and Britain affirmed Iraq's stability, sovereignty, and economic empowerment.
The US embassy in Baghdad said in a statement, "Ambassador Alina L. Romanowski met with the Special Representative of the Secretary-General of the United Nations in Iraq, Jeanine Hennis-Plasschaert, and the UK Ambassador to Iraq, Mark Bryson Richardson, on 3 June."
According to the statement, El Romanowski expressed her "appreciation for the coordination between the United Nations and the United Kingdom with the United States and the rest of the international community in support of a stable, prosperous, democratic and united Iraq."
"The United Nations and the United Kingdom are essential partners in our multi-pronged relationship with Iraq to advance our many common interests, including Iraq's stability and sovereignty, economic empowerment, anti-corruption efforts, energy independence, climate, protection of human rights, and underline our commitment to ensuring humanitarian assistance to people," she added. Almtafvin." Ended 29 / h https://www.mawazin.net/Details.aspx?jimare=195376
The Stability Of Gold Prices In The Iraqi Markets
Shafaq News/ "Foreign and Iraqi" gold prices stabilized in the local markets, today, Saturday.
Shafak News Agency reporter said that gold prices in the wholesale markets on Al-Nahr Street in the capital, Baghdad, recorded this morning, the selling price of one weight of 21 karat of Gulf, Turkish and European gold amounted to 381 thousand dinars, and the purchase price of 377 thousand, which are the same prices as last Thursday.
Our correspondent indicated that the selling price of one 21-carat weight of Iraqi gold was also stable at 341 thousand dinars, and the purchase price reached 337 thousand.
With regard to gold prices in the jewelers’ shops, the selling price of a 21-carat Gulf gold weight ranged between 380 thousand and 390 thousand dinars, while the selling price ranged from an Iraqi gold weight between 340 thousand and 350 thousand dinars.
It is equal to one mithqal of gold (five grams). LINK