Tuesday Morning Iraq Economic News Highlights 6-6-23

Adviser To The Prime Minister Sends A Message To Members Of Parliament Regarding The Vote On The Budget Law

Political    Baghdad -Today, Tuesday, the advisor to the Prime Minister, Diaa al-Nasseri, sent a message to members of parliament regarding voting on the budget law.

Al-Nasseri said in a tweet, followed by the Iraqi News Agency (INA): "The time has come for the people's representatives to say their word inside the parliament dome, not outside it, by voting on the tripartite budget 2023-2024-2025."

And he added, "Enough with compliments and procrastination by playing on words and letters, and the region's oil must be fully exported in accordance with the law and the constitution, and let this be the first reform in 20 years in the history of budgets."   https://www.ina.iq/186850--.html

A Political Bloc Warns Of An Article In The Budget

Today, Tuesday, the head of the National Approach bloc, Ammar Tohme, warned of a dangerous article on the Iraqi economy that was included in the 2023 budget draft.

Tohme said, in a statement, that “the draft budget for the year 2023 stipulates in Article (2)-b-paragraph (5) that :slight_frown: for ministries and governorates to open the door to investment and partnership with the private sector, and a committee is formed to prepare special instructions for them and grant them exceptions from relevant laws to be issued by the Council. Ministers), and this involves many risks and violations, including:

1. The article refers to the permissibility of partnership with the private sector, which is absolute and may include the participation of the local or foreign investor in the ownership of existing or built projects such as the Al-Faw port, electricity production stations, factories and laboratories of the Iraqi state, agricultural assets, infrastructure for the communications sector, and minerals such as phosphates, sulfur, mercury, copper, uranium... This is a waste of the state's strategic financial service resources.

2. The aforementioned article refers to the Council of Ministers issuing instructions to make an exception to the laws in force, and that includes suspending the laws in force or amending their contents other than the constitutional powers that are confined to Parliament. The legislative power is one of the competences of Parliament and may not be delegated or granted to the executive authority.

3. According to this article, the Council of Ministers can issue instructions that cancel what was included in the Investment Law of 2006, which in Article (29) of it prohibited privatization activities in the fields of oil and gas extraction and the government banking sector, and the ownership of these natural wealth becomes available to investors, merchants and influential people in the political scene! ! While such wealth is absolutely not subject to personal ownership by virtue of the constitution and fair principles.

4. What increases the concern about the existence of this article in the budget law is what was included in the basics paper for preparing the budget on its eighth page, as it stipulated (completing the financial and administrative reform processes, especially with regard to restructuring the Rasheed and Rafidain Banks and the rest of the government banks ... in a way that contributes to the advancement of the economy and revitalization of private investment) and structuring In one sense, it means privatizing these banks and selling their shares or some of them to merchants and businessmen! Especially since the end of the article referred to the activation of private investment.

5. Among the effects of applying this article is opening the door to the privatization of public production and distribution companies and providing the infrastructure for service ministries on which the state has spent tens of billions of dollars over many years and offering it at the cheapest price to investors, so they share in its ownership.

6. It follows from this article that the will of a few people (politically and financially influential) influence the state’s strategic, economic and service decisions, and control the political, economic and administrative decision of the country.   https://takadum-news.com/archives/167772

Deputy: Important Projects Are Threatened With Extinction Due To The Delay In Approving The Budget

 A member of the Parliamentary Transportation and Communications Committee, Zuhair Shahid Al-Fatlawi, warned, on Monday, against delaying the completion of important and stalled projects, especially transportation projects, due to the delay in approving the budget.

Al-Fatlawi said, in a press interview seen by “Takadum”, that “the delay in approving the budget negatively affects the completion of stalled and delayed projects and the new projects announced by the government.”

He added, "The delay will hit the investment sector and investors and will contribute to widespread unemployment among young people," noting that "there is a parliamentary movement to speed up the approval of the budget and improve the economy and investment in Iraq."

He pointed out that "many of the lagging and stalled projects have not been completed so far due to the delay in approving the budget, as well as the new projects announced by the government, including roads and bridges."    https://takadum-news.com/archives/167718

Parliamentarian: The Budget Will Be Passed In A Way That Does Not Satisfy The Deputies.. What Is The Relationship Of The Leaders Of The Blocs?

Today, Monday, a member of the House of Representatives, Adnan Al-Jabri, made a request regarding the mechanism for voting on the 2023 budget bill, and while it was likely that the voting date would be prolonged, he confirmed that the budget would be passed in a way that did not satisfy the representatives.

Al-Jabri said in a press interview seen by “Takadum” that “passing the federal budget law inside the dome of Parliament must be far from the influence of the leaders of the political blocs by putting pressure on their members in the House of Representatives.”

He added, “The vote on the budget is likely to be prolonged; As a result of the influence of the leaders of the political blocs on some deputies,” noting that “the political consensus will pass the budget in a way that may not satisfy the deputies.”

And regarding the position of the representatives of the southern governorates regarding the session to pass the budget, Al-Jabri stressed that “the representatives of the center and the south will not vote on the budget until after fairness to their governorates,” pointing out that “the budget law did not do justice to the governorates of the south, especially Basra.”  https://takadum-news.com/archives/167714

A Parliamentarian Determines The Duration Of The Implementation Of The Budget: It Will Be Passed During The Current Week

Today, Monday, a member of the House of Representatives, Jawad Al-Ghazali, confirmed the possibility of presenting and voting on the budget inside the parliament dome during the current week, and while specifying the time required to initiate it, he confirmed the existence of popular appeals to expedite its approval.

Al-Ghazali said in a press interview seen by Taqaddam, “There are calls and appeals from the Iraqi people to expedite the approval of the budget, and according to the information received, it will be sent and voted on, under the dome of parliament during the current week.”

He added, "The issue of passing the budget has become an urgent necessity for the people, especially since all the basic requirements for the advancement of service work and state departments depend on it, as it entered the second half of the current year, and so far it has not been approved."

The member of the House of Representatives explained, “The implementation of the budget needs more than a month to be approved and published,” noting that “delaying voting negatively affects government work, and in the end the people have reactions and disgust at the government’s performance.”    https://takadum-news.com/archives/167735

Because Of The Region's Disputes.. Al-Marsoumi: The Budget May Not Be Passed This Year

Economic expert Nabil Al-Marsoumi predicted, on Monday, the inability of the political forces to pass the general budget law during the current year, while stressing that the deepening of the differences with the Kurdistan region regarding several files may hinder the vote on the law.

Al-Marsawi said in a press interview, which was reviewed by “Takadam”, that “the budget has lost part of its effectiveness as a result; Its approval and the passage of the first half of the year have been disrupted,” noting that “the deepening of differences with the Kurdistan region regarding several files will disrupt the vote on the law, which means the continuation of the suffering of its passage.”

He continued, "The Kurdistan Democratic Party still rejects the Finance Committee's amendments to several paragraphs, most notably the control of oil exports and the delivery of its revenues, as well as the Federal Court's decision on the unconstitutionality of the Kurdistan Parliament, which deepened the dispute between the two Kurdish parties," pointing out that "we expect the inability of the political forces to Passing the general budget law during the current year, which will keep Iraq without a budget for the second year in a row.

The share of the region and some paragraphs related to Kurdistan are still a matter of controversy, as they have become a stumbling block in the way of completing the budget and placing it on the agenda for the purpose of voting on it, given the great differences between the two ruling parties in the region.

https://takadum-news.com/archives/167712

A Member Of The Democrat Talks About The Possibility Of Postponing The Approval Of The Budget Until After The Holiday

Money  and business  Economy News – Baghdad   A member of the Kurdistan Democratic Party, Wafaa Muhammad Karim, said on Monday that not approving the budget this week means that it will be postponed until after Eid al-Adha.

"There are still understandings and discussions between the Kurdistan Democratic Party and the government regarding the points of contention over the share of the Kurdistan region in the budget," Karim said in a statement to "Euphrates News" agency, followed by "Al-Iqtisad News".

Karim added, "Some of them have been agreed upon and others are still, as signatures were collected to hold the voting session on the budget tomorrow, Tuesday."

He continued, "We are awaiting the official announcement and the final agreement with the region about holding the session," adding that "not approving the budget this week means postponing it until after Eid al-Adha."  434 views  06/05/2023 - https://economy-news.net/content.php?id=34594

Officially.. Parliament Sets The Date For The Session To Vote On The Budget

Policy  2023-06-06 | 5,305 views  Alsumaria News – Politics  The House of Representatives has set next Thursday as the date for the voting session on the public financial budget.

The media department of the House of Representatives stated in a statement received by Alsumaria News, that "it was decided to hold a voting session on the budget law next Thursday."

Thursday's meeting agenda is below:   LINK

Parliament Sets The Date For The Session To Vote On The Budget

Money  and business  Economy News _ Baghdad  The House of Representatives has set, next Thursday, a date for voting on the tripartite budget bill.

The session’s agenda included, according to the media department of the parliament, “voting on the draft federal budget law for the years (2023, 2024, 2025).  https://economy-news.net/content.php?id=34601

Member Of Parliamentary Finance: The Government Will Face A "Major Problem" During The Next Year

Money  and business   Economy News – Baghdad  Today, Monday, a member of the Parliamentary Finance Committee, Jamal Cougar, expressed his hope that oil prices will remain high to "save the budget and the country."

Cougar stated, "The government will face a major deficit problem during the next year, because oil prices may trend downward, on the one hand, and on the other hand, the government has 23 trillion dinars rounded up from last year, and the surplus will be withdrawn during the current year."

He added, "It is expected that next year's budget will be for salaries only with the same deficit," noting that "the operational budget alone has reached 140 trillion dinars, in contrast, the state's resources are 134 trillion dinars, which is not even sufficient for the operational budget."

In an interview with the official newspaper, Cougar expressed his hope that "oil prices will remain high to save the budget and the country."  Views 388   06/05/2023 -https://economy-news.net/content.php?id=34590