Wednesday Morning Iraq Economic News Highlights 5-10-23
Wednesday Morning Iraq Economic News Highlights 5-10-23
For The Second Day... The Bank's Sales Exceed $200 Million In Wednesday's Auction
2023-05-10 03:36 Shafaq News/ The Central Bank's sales of dollars in an auction today, Wednesday, for the second day, exceeded the barrier of 200 million dollars. Shafaq News agency reporter stated, "The Central Bank sold today, during its auction for buying and selling US dollars, 207 million, 291 thousand and 257 dollars, which the bank covered at a basic exchange rate of 1305 dinars per dollar for documentary credits and international settlements of electronic cards, and at a price of 1310 dinars per dollar for external transfers, at a price of 1310." Dinars per dollar in cash.
Our correspondent added that most of the dollar sales went to reinforce the balances abroad in the form of (remittances, credits) at 155 million and 91 thousand and 257 dollars, while the rest of 52 million and 200 dollars went in the form of cash sales.
Our correspondent indicated that the number of banks that bought the cash dollar amounted to 15, while the number of banks that responded to requests for strengthening balances abroad reached 18, while the total number of exchange and mediation companies participating in the auction was 96 companies. LINK
Deputy Head Of Parliamentary Economy: The Salary Scale Needs 16 Trillion Dinars
Money and business Economy News – Baghdad Deputy Chairman of the Parliamentary Economy and Investment Committee, Yasser Al-Husseini, revealed that the salary scale needs 16 trillion dinars.
Al-Husseini said in a televised interview followed by "Al-Iqtisad News", that "there is prejudice to nine governorates in the draft budget," explaining that "the development of the regions amounts to two and a half trillion dinars for the nine governorates."
Al-Husseini considered that "approving the budget should not be at the expense of the southern governorates," calling for "correcting the course."
Regarding the salary scale, Al-Husseini said, "The salary scale needs 16 trillion dinars," explaining, "If we go to collect debts, the salary scale will be approved."
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Stopping Oil Exports From The Region Increases The {Budget} Deficit
Iraq 2023/05/10 Shaima Rashid Parliament Speaker Muhammad al-Halbousi announced the extension of the current legislative term until the approval of the federal general budget law, and while the Parliament’s Finance Committee hosted (for the third time) Minister of Finance Taif Sami regarding dismantling the paragraphs and provisions of the budget law, parliamentarians and economists warned of the negative impact of stopping oil exports from the region Kurdistan and its contribution to increasing the deficit in the public budget.
A member of the Finance Committee, Jamal Cougar, said, in an interview with "Al-Sabah": "The suspension of the region's exports increased the budget deficit, because among the Iraqi state's imports is the value of 400,000 barrels of oil exported from the region and included in the budget."
He added, "If the region does not export oil, it will not take any sums from Baghdad, and here will be a new problem regarding the salaries of employees in the region," noting that "two months ago the region did not export oil, and last month Baghdad paid 400 billion dinars in the form of a loan as salaries for employees." .
And he continued, “Among the deficit in the budget is the value of exporting oil from the region, and if it is not exported, the deficit will be greater, because the Iraqi state’s resources amount to 3 million and 500 thousand barrels per day, including 400 thousand from the region, meaning that Baghdad will sell 3 million.” And only 100,000 barrels in this case.
And Cougar indicated, "The government has included the region's oil imports from within the budget, and without it, there will be no share for the region in the budget, and here is the same equation and the first affected is the region," noting that "the timing of re-exporting oil from the region is not yet known, and it may be after the Turkish elections." ".
In addition, the economics and energy expert, Furat al-Moussawi, stated that "the oil agreement between Baghdad and Erbil in the budget law stipulates that the Kurdistan Regional Government shall hand over the Iraqi government 400 thousand barrels of oil per day, and Baghdad will receive all financial dues to the region, and that the financial damages for not The resumption of oil exports from the region to Turkey will be borne by the Iraqi government until all problems are resolved and exports resume normally.
Al-Musawi told Al-Sabah: "The oil revenues exported from the Kurdistan region, according to the agreement, will be placed in an account within the Central Bank of Iraq in the name of the Kurdistan Regional Government of Iraq, while Baghdad will have the power to enter and review the account in addition to passing the financial spending operations required by the regional government," noting That "stopping oil exports from Kurdistan to the Turkish port of Ceyhan harms the Iraqi economy because it undermines financial resources and reduces the volume of Iraqi oil revenues."
And he continued, "In previous budgets, the regional government was required to deliver 250,000 barrels of oil per day in exchange for the federal government paying the region's salaries, and when the region did not deliver oil, the federal government cut off the amount of undelivered oil by agreement from the region's budget share. The region's share of oil amounting to 400,000 barrels, according to the agreement, with the 2023 budget due to an external reason (because of Turkey).
The federal government must compensate the region's share and hand over its approved budget without receiving any amount of oil, which will contribute to adding a financial deficit to the Iraqi budget 2023.
Meanwhile, the Parliamentary Finance Committee hosted, yesterday, Tuesday, Minister of Finance Taif Sami (for the third time) regarding dismantling the paragraphs and provisions of the general budget law, reviewing expenditure tables, public expenditures, and detailed data.
The head of the committee, Atwan Al-Atwani, indicated, according to a parliamentary statement, the need to discuss the operational budget related to employee compensation, service and commodity supplies, grants, subsidies, social care, and expense and revenue accounts, in order to reach the appropriate notes and classify the financial sums and direct them in the appropriate place, as the operational budget amounted to approximately 133 trillion. Dinars in the General Budget Law for the year 2023, and the investment budget included in the budget was also discussed.
In the same regard, the Minister of Finance, Taif Sami, provided a detailed explanation regarding the chapters of the operational budget according to the tables listed, the actual expenditure and the distribution of amounts according to the spending units, as well as the mechanism for financing the spending units, the trusts account, the final accounts, employee compensation, the procedures for fixing contracts and wages, and the contracts of the Ministry of Health according to Law of Medical Graduation for Scientists, and Financing of Money for them.
Yesterday, Tuesday, a member of the Parliamentary Finance Committee, Youssef Al-Kalabi, suggested voting on the draft budget law between one to two weeks from now.
Edited by: Muhammad Al-Ansari https://alsabaah.iq/76600-.html
The Council Of Ministers Decides To Increase The Capital Of The Rafidain Bank And To Pay Iraq's Share In The World Bank
Money and business Economy News / Baghdad The Council of Ministers decided, on Tuesday, to increase the capital of the Rafidain Bank and pay Iraq's share in the World Bank.
Al-Sudani's office stated in a statement that "the cabinet agreed to increase the capital of the Rafidain Bank, which was approved by the Committee for Determining Corporate Capitals in the Ministry of Finance, by an amount of (212,000,000,000) dinars, only two hundred and twelve billion dinars, to be added to the bank's current capital of : (26,000,000,000) dinars, only twenty-six billion dinars, to become after the increase (238,000,000,000) dinars, only two hundred and thirty-eight billion dinars, to raise the capital of the Rafidain Bank on par with other banks, based on the provisions of the Public Companies Law (22 of 1997 ) the average".
And the Council approved, “within the course of financial and economic relations with international financial and banking institutions, the recommendation of the Ministerial Council for Economics (23072 s), regarding the payment of Iraq’s share in the World Bank; by the Ministry of Finance assuming the payment of an amount (26,898,925,642) dinars, only twenty-six billion and eight hundred.”
Ninety-eight million nine hundred and twenty-five thousand six hundred and forty-two dinars in cash, after the approval of the Federal General Budget Law for the year 2023, taking into account the new exchange rate, between the date of the claim and the date of payment. Views 473 Added 05/09/2023
https://economy-news.net/content.php?id=34102
A New Warning From The Finance Committee About The Budget Deficit
Money and business Economy News _ Baghdad The Finance Committee in the House of Representatives confirmed, on Wednesday, that the budget deficit negatively affects the productive circles, while several solutions were proposed to address the financial deficit.
A statement by the Media Department of the House of Representatives, a copy of which "Al-Iqtisad News" received, stated that "Deputy Speaker of the House of Representatives, Shakhwan Abdullah, chaired the meeting of the Finance Committee, in the presence of the committee chairman and members, to discuss the results of important points in addressing the problems facing the Iraqi economy and the possibility of reducing the deficit and taking notes on it. .”
The Vice-President of the Council confirmed that "the committee enjoys the national identity and supports the unified Iraqi spirit," appreciating "its role and the efforts it makes in order to complete a budget that meets ambition."
He pointed out, "The people are waiting for the approval of the budget, which directly affects their lives."
He added, "The vision became clear to the committee after hosting those concerned and diagnosing the negative and positive aspects, and the mechanism for making transfers between the expenditure sections, in order to reduce the deficit and increase non-oil resources, especially with the instability of the Iraqi economy due to the discrepancy in oil prices."
For his part, the Chairman of the Committee stressed that "the budget deficit negatively affects the productive circles, which requires confronting reality and paying attention to the private sector and its involvement with the government sector, activating the collection and fees service, reaching radical solutions to move forward with a common vision, and striving to end the situation of deporting problems and working to eliminate them." By identifying important issues according to scientific steps.
The statement added, "The committee's interventions included its vision on the government's goals in accordance with the implementation of the government program, achieving social justice in distributing service projects among administrative units, investing resources based on time feasibility and a productive vision, in addition to resolving the issue of borrowing as it overburdens the budget, as well as moving on." With a three-year or one-year budget, in order to develop a comprehensive vision.
And he continued, "A number of issues of common concern were also raised, including discussing Article (140) of the constitution, legislation of the oil and gas law, justice for the families of the victims of the sons of Iraq during the time of the former regime, and the need to deliver services to all regions and end their suffering, through the necessary sums of money within the budget." the public". https://economy-news.net/content.php?id=34109
In Detail, A New Meeting Of Parliamentary Finance On The Budget
Money and business Economy News – Baghdad The Finance Committee in the House of Representatives confirmed that the budget deficit negatively affects the productive circles, while several solutions were proposed to address the financial deficit.
A statement by the parliament's media department stated, "Deputy Speaker of the House of Representatives, Shakhwan Abdullah, chaired the meeting of the Finance Committee, in the presence of the committee chairman and members, to discuss the results of important points in addressing the problems facing the Iraqi economy and the possibility of reducing the deficit and taking notes on it."
Abdullah appreciated, according to the statement, "the role of the committee and the efforts it exerts in order to achieve a budget that meets ambition," pointing out that "the people are waiting for the approval of the budget, which directly affects their lives."
He added, "The vision became clear to the committee after hosting those concerned and diagnosing the negative and positive aspects, and the mechanism for making transfers between spending chapters, in order to reduce the deficit and increase non-oil resources, especially with the instability of the Iraqi economy due to the discrepancy in oil prices."
For his part, the head of the committee, Atwan Al-Atwani, said, "The budget deficit negatively affects the productive circles, which requires confronting reality and paying attention to the private sector and its involvement with the government sector, activating the collection and fees service, and reaching radical solutions to move forward with a common vision, and striving to end the situation of deporting problems." And work to eliminate them by identifying important issues according to scientific steps.
The statement added, "The committee's interventions included its vision about the government's goals in accordance with the implementation of the government program, achieving social justice in distributing service projects between administrative units, investing resources based on time feasibility and a productive vision, in addition to resolving the issue of borrowing as it overburdens the budget, as well as moving on." With a three-year or one-year budget, in order to develop a comprehensive vision.
And he continued, "A number of issues of common interest were also raised, including discussing Article 140 of the constitution, legislation of the oil and gas law, justice for the families of the victims of the sons of Iraq during the time of the previous regime, and the need to deliver services to all regions and end their suffering, through the necessary sums of money within the general budget." ".
https://economy-news.net/content.php?id=34110
Today.. The End Of The Deadline For The "State Administration" To Resolve The Budget And The Finance Committee: We Are Not Concerned With Political Agreement
Posted On2023-05-10 By Sotaliraq Baghdad / Firas Adnan Today, Wednesday, the deadline for the state administration coalition to end the debate on the budget expires, but the Finance Committee confirmed its continuation of its work, pointing out that it is not concerned with political agreements, expecting the completion of the final formulations of the law within ten days, but it was likely to complete the voting process before the end of this month.
A member of the Finance Committee, Representative Mustafa Al-Karawi, said, "The committee started hosting independent bodies to discuss their share of the budget."
Al-Karawi continued, "These hosts included the Martyrs and Political Prisoners Institutions and the Integrity Commission."
He pointed out, to «discussing the operational and investment budget for these institutions, and we have noticed that there is an actual need to increase allocations».
Al-Karawi said, "The committee will go to support these institutions after we complete all the data and reports."
He pointed out, "The role of independent bodies is effective and important. Their work must be supported through electronic automation and the provision of mechanisms and office issues."
Al-Karawi noted that "many of those covered by the compensation of the martyrs and prisoners did not receive their dues, whether it was plots of land or cash allowances, and the numbers are increasing, and the martyrs of the Popular Mobilization Forces and their wounded joined them."
He stressed, "This has formed large backlogs for us, which require that they be addressed by intensifying meetings within the Finance Committee."
Al-Karawi believed that "this year enjoys high financial allocations, and part of it can be used to address the dues of those covered by the laws of the Martyrs and Prisoners Institutions."
And he continues, "The allocations for this file will be through transfers between the chapters of the budget, as we cannot go to assigning new financial burdens to the treasury."
Al-Karawi stressed that "the committee hosted more than twenty government institutions, and it will have a special meeting during which it will review what has been reached regarding these meetings and make important observations regarding the agreement and revenue after analyzing the data collected over the past period."
And he stressed, "The audit procedures are still ongoing, and we had a meeting with Finance Minister Taif Sami two days ago to review some items in the budget."
Al-Karawi warned, "The final decision on how to transfer has not been taken, but we have a crystallized point of view that most state institutions suffer and need financial allocations, but the most important thing is the ability of these institutions to spend their sums during the remaining period."
And he continues, “Most institutions suffer from a lack of citizen services, automation problems with high routine, and the need for reorganization.”
Al-Karawi continued, "The officials of the bodies whom we met, whether ministers or others, presented to us their real needs, but the lesson lies in the extent of the ability to implement budgets."
And he went on to say, “The committee has a general goal, which is to reduce the deficit in the budget, but we have not reached a specific number because we have not completed all meetings with state institutions until the present time.”
Al-Karawi stressed that "meetings with the security authorities were limited to the Ministry of the Interior, and we have not met until now with the Ministry of Defense, the National Security Agency or the Intelligence Service due to the lack of time and the large number of institutions."
And he talked about “a political agreement that includes submitting a preliminary report on the budget today, Wednesday, and this was adopted by the State Administration Alliance.”
Al-Karawi added, "The Finance Committee, which operates within a technical framework, is not concerned with this agreement or other political agreements."
It is not excluded, "Most of the hosting will be completed during the next two days, so that we can begin to ripen ideas next week and deal with proposals."
Al-Karawi expects that “we will be at the beginning of the end next week in maturing the budget and writing paragraphs.”
And he stressed, "The sovereign ministries have an important role, but there are other service ministries that directly affect the citizen, such as water resources and agriculture. They also need allocations, because we are dealing with the service provided by the ministry during this period, not just its weight."
Al-Karawi stated, "Iraq is currently facing a water scarcity, and it has reached drinking water, and this means that we need financial allocations for this file."
And he finds, “The committee needs enough time to finalize the budget, because we are facing new problems that were represented by the terrorist organization ISIS, and then the health crisis, leading to drought and water scarcity.”
Al-Karawi pointed out that “Parliament seeks to pass a law commensurate with the economic situation and guarantees the stability of financial issues in Iraq,” stressing “the importance of consensus with the government to pass the law, and there is nothing wrong with continuing to sit and develop solutions to controversial points, because our goal is to achieve the public interest.”
He mortgages, “the continuation of external borrowing with investment projects in the budget, and the same is the case with internal borrowing.”
Al-Karawi added, "The Minister of Finance indicated, when we met her, the need to solve part of the internal borrowing because there are accumulated amounts that have not been paid during the past years."
And he talked about "the Ministry of Finance's intention to rotate the amounts of this borrowing with internal banks to revitalize the accounts and add interest for the inability to pay the previous debts."
Al-Karawi believed, "The most prominent solution to address the deficit is to raise non-oil revenues, in addition to reducing corruption in institutions that generate money for the state and reducing expenses for recurrent projects that need reform."
He pointed out, "The budget includes amounts of up to 17 trillion dinars from non-oil revenues, but we see difficulty in achieving this amount without developing a program that includes electronic control of these revenues."
Al-Karawi concluded, "These solutions are long-term, but their implementation should take place by advancing them and putting a step on the right path."
A parliamentary statement, received by (Al-Mada), stated that “the Parliamentary Finance Committee hosted, in a new session, the Minister of Finance, Taif Sami, regarding the budget.”
And the statement continued, “The head of the committee, Atwan Al-Atwani, stressed the need to discuss the operational budget related to employee compensation, service and commodity requirements, grants, subsidies, social care, and expense and revenue accounts, in order to reach the appropriate notes, and to classify the financial sums and direct them in the appropriate place, as the operational budget amounted to approximately 133 One trillion dinars in the general budget law for the year 2023, and the investment budget included in the budget was also discussed.
The statement added, “The observations of the committee members focused on borrowing files and the ministry’s plan to increase resources and procedures in the event of a drop in oil export prices, as well as the differences in oil imports to invest in covering the deficit and compensating the budget, the amount of debt owed by Iraq, the amounts of internal and external borrowing, as well as solutions.”
Proposed to address the problem of contracts and wages and the obstacles facing these files and the ministry's expectations of the volume of expenditures, and the possibility of developing legal texts that contribute to supplementing the state treasury.
And he pointed out, "The committee asked the Minister of Finance to provide it with an official letter regarding its vision in implementing the paragraphs of implementing the government program."
In turn, the Minister of Finance, Taif Sami, explained, according to the statement, “The chapters of the operational budget according to the listed schedules, the actual expenditure, and the distribution of amounts according to the spending units, as well as the mechanism for financing the spending units, the trusts account, the final accounts, employee compensation, procedures for fixing contracts and wages, and the contracts of the Ministry of Health according to the Medical Graduation Law.” Scholars, and financing the sums of money for them, stressing that it is not possible to reduce the maintenance budget allocations due to indebtedness and maintenance expenses.
The statement noted, “Discussing the sums allocated for the salaries of social welfare and the unemployed, and discussing the allocations of service requirements such as the Internet, printing, transportation, etc., and the commodity requirements related to the sums of formations, financing and processing the needs of the ministries, as well as the sums of payment of Iranian gas import debts, in addition to the sums of grants, subsidies, and public activity.” And the benefits of internal and external debt ».
For his part, committee member Representative Jamal Cougar stated, “The Parliamentary Finance Committee needs a time limit that does not exceed ten days to complete its work on the budget.”
Cougar continued, "Our hosting of government institutions is nearing completion, with the discussion continuing on the schedules and texts contained in the project."
And he pointed out, “The Finance Committee, after it finishes its work, will be presented to a vote, and therefore our task will end and the decision will be for the representatives.”
And Cougar stated, “The deadline for the state administration coalition to end the budget discussions will end today, but we are not bound by it.”
He stressed, "Overcoming the political differences that were in the beginning, with the presence of blocs that wanted to link their demands with the budget, and we have passed this stage."
And Cougar continues, “The Finance Committee is in the process of finalizing the law, and thus we have overcome the main obstacles.”
And he noted, “There are three main points mentioned in the budget that made it different from other budgets. The first is the increase in its amounts by reaching 200 trillion dinars, and the second is the large deficit that reaches 64 trillion dinars, and the third is that this budget will be for three years.”
And Cougar concluded, “Parliament will certainly work to pass the budget before the end of this month, in order to then give way to law enforcement procedures related to ratification, publication, and issuance of instructions to facilitate its implementation.” LINK