Tuesday Morning Iraq Economic News Highlights 5-16-23
Tuesday Morning Iraq Economic News Highlights 5-16-23
For A Budget Without A Deficit.. Iraq Needs To Sell Oil At $75.8 A Barrel
2023-05-15 01:22 Shafaq News/ The International Monetary Fund saw that Iraq needs to sell a barrel of oil at $75.8 to achieve balance in the budget and avoid the deficit.
A table for the fund, seen by Shafaq News Agency, showed that the balance in Iraq's budget for the year 2023 will be achieved if the oil price it sells is $75.8 per barrel, after it was $66.5 for the year 2022, $53.3 for the year 2021, and $56.6 for the year 2020.
He added, "It is expected that the price balance that Iraq needs will increase in 2024 to reach $76.4 a barrel."
He pointed out that "the most countries that need a higher price in selling oil in order to equalize its budget is Bahrain, at 126.2 dollars a barrel for the year 2023, while the least countries are Qatar, which only needs 44.8 dollars a barrel to equalize its budget during the year 2023." LINK
Chihoud: The Federal Government Has Put In Its Priorities How To Deal With The Budget Deficit And The Implementation Of Government Program Projects
Tuesday 16, May 2023 09:01 | politics Number of readings: 412 Baghdad / NINA / - Representative Muhammad Saadoun Al-Saihoud affirmed that the federal government has put in its priorities how to deal with the budget deficit and the completion of government program projects.
Al-Shihoud said in a press statement today that: The Sudanese government is working according to an organized strategy and prepared programs that contribute to addressing all problems and obstacles to advance and raise the country to an advanced and developed level in terms of providing services and improving the country's sectors, and therefore it is able to set up a successful mechanism to finance the budget deficit through internal borrowing. And the Development Fund, revolving balances, and central bank reserves, as well as foreign loans and other outlets.
He added, “The government program is continuing to implement strategic and service projects, including rehabilitation and maintenance of hospitals, water desalination projects, infrastructure projects, and projects that include rehabilitation and development of electric power, rehabilitation and maintenance of a number of laboratories and factories, and other projects.”/ https://ninanews-com.translate.goog/Website/News/Details?Key=1053641&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en
Sudanese Financial Advisor Defends The Decision: The Dinar Is A Sovereign Symbol[/Size]
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that the main objective of the monetary policy of the Central Bank is to maintain the stability of the purchasing power of the Iraqi dinar, indicating that the circulation of another currency in the markets hits the centers of the local economy.
Salih said in a press interview seen by “Takadam” that “the primary objective of the monetary policy of the Central Bank under Central Bank Law No. (56) of 2004 is to maintain the stability of the purchasing power of the Iraqi dinar, the stability of the general level of prices and the reduction of inflation.”
Saleh added, "The circulation of another currency, whether the dollar or something else, leads to striking the centers of the local economy," noting that "the Iraqi dinar is a symbol of the country's sovereignty."
And he pointed out that "the aim of the recent central bank procedures, related to preventing trading and pricing in dollars, came to eliminate the speculation process in the exchange rate," calling for "an emphasis on dealing in the Iraqi dinar."
And he indicated that “the aim of the central bank’s procedures is to achieve stability in prices and the stability of monetary incomes and not to expose citizens’ monetary rights from their incomes and wealth to a state of turmoil, which is generated by the use of another country’s currency within the national economy.”
The advisor noted that "dual currency is one of the most dangerous financial issues facing the countries of the world, and there is no stable country that deals with two currencies
https://takadum-news.com/archives/164607
Exchange Rates Of The Dollar Against The Dinar
Market Economy News – Baghdad Al-Eqtisad News publishes the exchange rates of the dollar against the dinar in the local markets.
Member of Parliamentary Finance: The deficit and the size of the budget remain the same
Money and business Economy News – Baghdad A member of the Parliamentary Finance Committee, Khalil Ghazi, stated that the size of the budget and the deficit will remain the same in the financial budget for the year 2023.
Ghazi said in a statement to the “Rudaw” network, followed by “Al-Iqtisad News”, that “the size of the budget will remain the same, but some transfers will occur between expenditure items.” ".
He explained, "We are now in the stage of discussing the budget items, that is, the texts of the budget articles, and the possibility of amending some of them or adding some new articles," adding that "the size of the budget deficit will remain the same."
53 views Added 05/16/2023 - 11:52 AM https://economy-news.net/content.php?id=34231
Basra Deputies Announce Their Refusal To Vote On The Budget Law Unless Their Conditions Are Passed
Baghdad-Iraq today: Zahra Al-Bajari, a member of the House of Representatives for Basra Governorate, revealed that the representatives of Basra Governorate agreed not to participate in the voting session on the general budget in the event that the allocations remained to maintain their status in the budget.
Zahra Al-Bajari said in a press interview, "The Basra Governorate finances about 90% of the federal budget, but the size of the allocations allocated to the Basra Governorate does not commensurate with the financial obligations of the projects in the governorate."
Zahra Al-Bajari added: “We have financial obligations in the province of about 3.8 trillion Iraqi dinars, in the form of ongoing projects, while all allocation is 1.6 trillion dinars, which means that all existing ongoing projects will stop working, in addition to that there is no project. New in Basra Governorate during the next three years.
Zahra Al-Bajari, a member of the Iraqi Parliament representing Basra Governorate, pointed out that "there are large environmental pollution in Basra Governorate, due to oil extractions and water salinity, suffering from these two issues, and the lack of potable water as well." as vegetation cover,” adding that “nevertheless, funds have not been allocated to treat these problems, such as salinity, mines, and war remnants, which Basra Governorate suffers from.”
Zahra Al-Bajari stated that "the state did not specify amounts for the removal of mines and war remnants, which kill dozens of people annually," adding that "the representatives of the Basra governorate decided that in the event that appropriate funds are not allocated to the governorate, they will refrain from participating in the voting session on the general budget," and Al-Bajari added that "25 deputies from Basra decided to boycott the session for voting on the budget," LINK
Petrodollar Funds Are Deferred Payments
Iraq 2023/05/16 Haider Al-Jaber In addition to the internal and external debts, the federal government owes huge amounts of money under the item “petrodollars”, which were deducted from the oil export funds in previous years, and these amounts were not paid due to the ongoing crises.
A member of the Parliamentary Oil and Gas Committee, Ali al-Lami, announced, earlier, the agreement to include the payment of the amounts due to the oil-producing provinces from the “petrodollar” to all provinces, as compensation for the damages incurred, stressing the existence of an agreement to collect these past and current funds and include them in the budget.
Representative Tel Al-Mishaal revealed that the amount deducted from oil exports had been reduced to two dollars per barrel instead of five dollars, and he also revealed the existence of a specific agreement to pay these sums.
Al-Mishal told Al-Sabah: “Petrodollar allocations are in the general budget, and the law previously provided for a deduction of $5 per barrel,” noting that “because of successive financial crises, the war on terrorism, and the Corona crisis, liquidity decreased and the law was disrupted, and the sums were recycled and recorded in debt.” The federal government in favor of local governments in the oil and gas producing provinces.
Al-Mishal, a representative of the Basra Governorate, which has the largest share in the export of Iraqi oil, continued, "The sums of Basra owed by the federal government amount to 18 trillion dinars." He revealed that "the amount of petrodollars was calculated in the current budget law at 2 dollars per barrel." “The expected surplus from oil prices will be 70 percent for the federal government
And 30% to pay the dues of local governments, and this agreement was placed within paragraphs
General Budget Law.
He explained that “the text exists and the application does not exist due to lack of liquidity, and the funds will remain with the federal government, and the payment will be made.”
If cash is available.
Economic analyst Ayman al-Jubouri stated that the petrodollar amounts are more than enough to develop
The reality of the concerned governorates.
Al-Jubouri told Al-Sabah: “If the petrodollar sums are spent in their designated place, they will change the economic reality.” He warned against corruption and bureaucracy, calling for to go to specific projects.
He added, “The petrodollar amounts must be directed through the federal government through the concerned ministries in coordination with the concerned governorates to develop development and investment plans, in order to avoid the establishment of luxury projects.” And he indicated that “the petrodollar amounts are sufficient and will increase if they are optimally exploited away from corruption and waste.” Establishing projects in education, health and transportation, and establishing institutions and companies mixed investment. https://alsabaah.iq/76997-.html
Representatives Expect A Partial Approval Of The Budget And Linking Controversial Articles To Political Consensus
Posted On2023-05-16 By Sotaliraq [size=45]Representatives expected a partial vote on the budget, expecting some controversial paragraphs to be postponed to a later time in order to allow room for agreement on them, pointing out that meetings are continuing with ministries with the aim of making appropriate transfers between ministries.
Representative Mustafa Al-Karawi stated, “The Parliamentary Finance Committee, until this hour, continues to discuss the paragraphs of the budget law, and there are many parliamentary observations on the paragraphs, especially related to financial allocations for the governorates and some ministries, and we need time to reach an agreement on those paragraphs.”
And Al-Karawi indicated that “there are reservations among some parliamentary blocs, and deputies about the budget law, and there is almost confirmation and consensus on the need to make fundamental amendments to the paragraphs of the law, before passing it, and without that it is very difficult to pass the law, and for this we will work to make transfers in financial allocations in order to be fair.” provinces.”
And he pointed out, “The House of Representatives can start voting on some paragraphs of the budget law, which do not have any disagreement or reservations, and postpone the controversial paragraphs until next week.”
Al-Karawi went on to say that “passing the entire law during the current week, we believe that it is not easy, and it requires parliamentary consensus, and this consensus does not exist until now, unless the necessary amendments are made to the law.”
Representative Thamer Dhiban Al-Hamdani stated, “The Finance Committee in Parliament continues to hold its meetings, as there were hosts for all ministries, governorates and agencies during the past period, with the aim of reviewing the real needs of the ministries.”
Al-Hamdani added, "The meetings devoted to transferring between the chapters of the budget are still continuing, especially within the Finance Committee."
He pointed out, "A large part of the sums has been allocated to some ministries compared to previous budgets and the emergency support law for food security that Parliament voted in the middle of last year."
Al-Hamdani indicated that "what separates us from approving the budget law is making some transfers, reducing the deficit within reasonable limits, and setting a deadline for the session during the current week, or early next week."
On the other hand, Representative Basem Al-Gharabi said, “There are controversial points that are still ongoing in the general budget law, and some controversial points still control it,” ruling out “a vote on the budget during the current week.”
Al-Gharabi added, "The hosting of the concerned authorities in the ministries has not been completed, and many of the budget paragraphs are unknown, and we do not know the classifications of some amounts," explaining that "the special programs and grants within the ministries must be classified." On a related note, the representative for Basra, Zahra Al-Bajari, stated, in press statements, that “the province finances about 90% of the federal budget, but the size of the allocations allocated to the province of Basra is not commensurate with the financial obligations of the projects in the province.”
Al-Bajari added, "Basra has financial obligations of about 3.8 trillion Iraqi dinars, in the form of ongoing projects."
And she pointed out, “The whole allocation is 1.6 trillion dinars, which means that all existing ongoing projects will stop working, in addition to that there is no new project in Basra Governorate during the next three years.”
Al-Bajari pointed out that “there are large environmental pollutions in Basra Governorate, due to oil extractions and water salinity, suffering from these two issues, and the lack of potable water as well as vegetation cover.” However, no funds have been allocated to address these problems, such as salinity, mines, and war remnants. suffering from the province of Basra.
Zahra Al-Bajari stated that "the state did not specify amounts for the removal of mines and war remnants, which kill dozens of people annually."
He pointed out, "The representatives of the Basra governorate decided that in the event that the appropriate funds are not allocated to the governorate, they will refrain from participating in the voting session on the general budget."
And Al-Bajari went on to say that “25 deputies from Basra decided to boycott this session for voting on the budget, and despite the existence of loans, the loan amounts were not allocated to the province of Basra in the budget.”
A parliamentary statement received by (Al-Mada) stated that “the Services and Reconstruction Committee yesterday hosted the governors in a meeting devoted to discussing the budget.”
The statement added, “During the meeting, the members of the committee listened to the needs of the governorates with regard to the priority of projects and the distribution of financial allocations fairly between the governorates for all service sectors in the field of energy, health, education, housing, water, sewage, roads and bridges, as well as the need to develop solutions to the financial obstacles of lagging projects and strengthen the principle of decentralization.” administration and enhance its financial allocations.
He pointed out, “The Parliamentary Services and Reconstruction Committee is in the process of submitting a report on provincial projects to the Finance Committee for consideration and study for inclusion in the budget.”
The House of Representatives continues the process of budget legislation since the days before the Eid holiday, as the government project came loaded with amounts that are the highest in the history of Iraq, reaching 200 trillion dinars, in addition to a very high deficit estimated at 64 trillion dinars. Then put it to vote. LINK