Wednesday Morning Iraq Economic News Highlights 6-14-23
Wednesday Morning Iraq Economic News Highlights 6-14-23
(Baghdad Today) Publishes The Tripartite Budget Law In Its Final Version
Policy |Baghdad today - Baghdad (Baghdad Today) publishes the Federal Budget Law for the years (2023-2024-2025) in its final version.
And the House of Representatives approved the general financial budget law for 3 years, after work that lasted for five consecutive days and months of controversy and discussions.
The last session related to the law was held on Sunday evening, June 11, about 7 hours after the scheduled date, as work began from Article 43 up to the last paragraphs of the law, before the Council returned to settling the postponed articles, most notably Article 15, which discussions took until the early morning hours. Monday. LINK Press here
Al-Halbousi To An American Delegation: The Conditions Are Ripe For Economic Work In Iraq
Money and business Economy News – Baghdad Parliament Speaker Muhammad al-Halbousi confirmed today, Tuesday, that Iraq is open to foreign companies, and that conditions are now ripe for economic work in the country.
A statement from Al-Halbousi's office said that the latter received "a delegation from the American Chamber of Commerce, which included a large group of companies specialized in various fields, headed by the President of the American-Iraqi Business Council, Steve Lotus, and in the presence of the Chairman of the Investment Committee and the Vice-Chairman of the Parliamentary Economy, Industry and Trade Committee."
The meeting discussed "strategic cooperation, strengthening bilateral relations in the economic aspect between Iraq and the United States of America, and (Al-Halbousi) listened to a review by members of the delegation of existing investment opportunities and proposed projects in the field of health, energy, banking system, infrastructure, services, and others."
Al-Halbousi stressed that "Iraq is open to foreign companies, provides the necessary facilities for investment in various fields, and works to provide the appropriate environment for international companies through the necessary legislation."
He pointed out that "the conditions are now ripe for economic work in Iraq, and there are many investment opportunities and important projects within the government's vision and its executive program, which were approved within the Federal General Budget Law."
Views 172 Added 06/13/2023 - https://economy-news.net/content.php?id=34728
Experts: The Budget Raises Concerns About The Country's Economic Future
Posted On2023-06-14 By Sotaliraq Translated by: Hamed Ahmed Iraq's passage of the largest budget in its history has raised fears among experts, who say it will take the country's expenditures to the brink of collapse, while government supporters insist this budget law is vital to mitigating a long post-election political debate that has led to entire years without budgets. The last one is in 2022.
Iraq had previously spent 2014 and 2020 without a budget, for reasons also due to sharp political divisions.
A report by (The National) news website, translated by (Al-Mada), indicated that “despite the passage of 18 months without a budget amid record oil revenues and legislation restricting government expenditures to levels lower than the previous budget, the Iraqi parliament took four consecutive sessions in order to pass this year’s budget.” ».
The report added, "Part of the reasons for the delay were due to disagreements between different political blocs, most of which are about the Kurdistan region's share of the budget, the rights of certain other provinces within the region and how to market their oil exports."
He pointed out, “The budget, which amounts to $152 billion, of which 12.6% is allocated to the Kurdistan region, has raised concerns about whether oil prices fall below $70 a barrel, which is the expected average price per barrel over three years according to which the budget was calculated, then it will The state will not be able to fulfill what was approved in this agreement.
The report pointed out, "The International Monetary Fund had even worse predictions regarding the oil price rate that it relied on in calculating the budget of Iraq, a country whose economy depends entirely on oil."
And he continued, "The Monetary Fund confirmed that Iraq needs an average price of a barrel of up to 96 dollars, and the Brent crude oil benchmark price index for Monday closed at 72 dollars a barrel."
"The budget is based mostly on operating expenses, and there is not enough share of the budget allocated for investment," says Sajjad Jiyad, a political analyst and fellow of the American Century Foundation Institute.
Jiyad denied, "The existence of real allocations for investment in the budget, as it focused only on expanding what was in previous budgets and left only a few billions for investment."
Jiyad indicated, "Even if the government was able to implement 80% of the budget items, it would not increase oil revenues, but this would lead to the creation of new job opportunities."
And the report continues, "Iraq suffered from low executive budget allocations, which impeded spending on vital reconstruction projects even during times of high oil prices."
The report noted, "The government must instead increase investment spending and reduce part of other expenditures in order to mitigate a high deficit estimated at $49 billion."
And Jiyad goes back to saying, "If this is not done, and if oil prices fall at the time, we will not have a real way to mitigate that deficit unless we reduce those expenses."
For his part, the government advisor for financial affairs, Mazhar Muhammad Salih, said in an interview with the Associated Press, translated by Al-Mada, that “the new budget will be a cause for concern, as it depends mainly on oil revenues, and if oil prices fall, the size of the deficit will It will increase, which will force the government to borrow. It is a dangerous expectation that will lead to debt problems.”
In addition, Mohsen al-Mandalawi, First Deputy Speaker of Parliament, said, "It is vital that we reduce spending and increase non-oil revenues to enhance the state's imports in the sectors of agriculture, services and reconstruction."
While the Prime Minister's advisor for foreign relations, Farhad Alaeddin, stated that "the budget law is vital for the implementation of the government program and the projects it includes."
And Aladdin continued, “The budget law this time provides continuity and prevents any obstruction to government performance. The government will be able to start implementing infrastructure projects and transform Iraq into one of the largest workshops in the region ».
For Prime Minister Muhammad Shia al-Sudani, according to the report, “the budget that the Council of Ministers voted on last March 13 prioritizes the basic needs of Iraqi citizens and their families, and aims to meet their aspirations for government services, construction projects, and infrastructure.”
And the report went on, “Al-Sudani said that the budget addresses the phenomenon of recurring projects’ delay or failure that has accompanied governments over the past years. This vision also confirms the reduction of operational spending, the development of non-oil revenues, and the support of the private sector.” For: (The National) and (The Associated Press) LINK
The Ministry Of Oil Issues A Statement Regarding Baghdad's Hosting Of The Celebration Of The Founding Of OPEC
Energy Economy News _ Baghdad Today, Wednesday, the Ministry of Oil issued a statement on the occasion of Baghdad's hosting of the celebration of the 60th anniversary of the founding of the Organization of Petroleum Exporting Countries (OPEC).
A statement of the ministry, received by "Al-Iqtisad News", stated that "the capital, Baghdad, will host the celebration of the 60th anniversary of the founding of the Organization of Petroleum Exporting Countries (OPEC), in the People's Hall, which witnessed on September 14, 1960 the signing by five oil-producing and exporting countries, namely: Iraq and the Kingdom."
Saudi Arabia, the Islamic Republic of Iran, the State of Kuwait and the Republic of Venezuela, to declare the independence of the decision in the management of oil resources and to break the monopoly of foreign companies.
He added, "This occasion was scheduled to be celebrated in September of 2020 in the People's Hall in the capital, Baghdad, but the celebration of this historic event was postponed several times due to the Corona pandemic and its effects on public health and travel," noting that "in the interest of Iraq and OPEC, to revive the occasion." And its celebration in Baghdad, to reaffirm the importance of solidarity and unity among member states for the stability and balance of the global oil market.
The statement stated, "The Iraqi government and the Ministry of Oil welcomed the hosting of this celebration in Baghdad, 63 years after the emergence of OPEC from Baghdad."
The Deputy Prime Minister for Energy Affairs - Minister of Oil, Hayan Abdul-Ghani, emphasized "the importance of holding the celebration in Baghdad, more than 6 decades after the founding of OPEC, and he welcomed the guests of Iraq from the members of the Organization of Petroleum Exporting Countries to Baghdad, the House of Peace, the Baghdad of civilization and history."
He praised the "Joint Cooperation and Solidarity Agreement (for OPEC Plus)," expressing "Iraq's pride and its people in hosting ministers and delegations of OPEC member states, and celebrating together, in the People's Hall in Baghdad, the achievements made over the past decades."
He stressed "the necessity of strengthening and consolidating the spirit of joint action to achieve the goals of the organization in drawing up a distinguished and promising economic future for their countries and peoples."
For his part, OPEC Secretary-General Haitham Al-Ghais said, "The holding of this celebration is an opportunity for all members of the OPEC family to think and review its exceptional history, celebrate its successes, and renew its commitment to the firm principles and policy on which the organization was based."
"Remembering our past will be a source of inspiration for achieving a bright and successful future," he added.
The Secretary-General of OPEC affirmed, "The ministers of member states were keen to come to Baghdad and meet at the place from which the organization launched in 1960 to express feelings of euphoria, joy and love for this city, which represents an important part of OPEC's history and human history."
The statement added, "The Ministry of Oil, in cooperation with the General Secretariat of OPEC, is preparing a distinguished festive program to be held in Baghdad commensurate with the value of the event and the importance of OPEC and its role in the stability of global oil markets.
It includes a number of cultural and artistic activities, including the opening of the Baghdad International Forum for Cartoons - 2023." specializing in oil and energy, a book exhibition dealing with oil and energy affairs, and an exhibition of plastic arts and ceramics on the present, history and civilization of Iraq, in addition to various artistic and folkloric performances.
The Ministry of Oil had initiated the reconstruction and rehabilitation of the People's Hall in Baghdad in preparation for hosting this celebration.
It is noteworthy that OPEC is an international organization that was founded in the historic Baghdad conference that was held on September 10-14, 1960, in the presence of the oil ministers of the Islamic Republic of Iran, the Republic of Iraq, the State of Kuwait, the Kingdom of Saudi Arabia, and the Republic of Venezuela. The organization has grown since then to include in its membership today 13 oil producing country. Views 9 Added 06/14/2023 - https://economy-news.net/content.php?id=34744
Parliamentary Finance: The budget deficit is “planned” and we succeeded in dealing with it
Posted On2023-06-14 By Sotaliraq The Parliamentary Finance Committee confirmed addressing the budget deficit, describing it as planned and not real, stressing that its members are waiting for the government's position on the law after completing the review process on its provisions.
Committee member Youssef Al-Kalabi said in an interview with (Al-Mada) that “the deficit in the 2023 budget was dealt with in a schematic and paper-based way, not realistic, so we are clearly supportive of the governorates that suffer from a decline in the level of poverty and services, including the central and southern governorates.”
Al-Kalabi added, "The budget included many advantages that need funding and realistic programs for their implementation, including increasing funds to poor governorates, confronting drought, and treating chronic and malignant diseases."
For his part, another member of the committee, Mueen Al-Kadhimi, said in a statement to (Al-Mada) that “Parliament is awaiting the government’s response to state its position on the items and additions to the financial budget and to determine the possibility of implementing the additions or not.”
He pointed out, “The possibility of adding new money to the financial budget because it is the authority of the Council of Ministers and not the authority of the House of Representatives, and the Council of Ministers has the right to appeal against the additions that occurred in the items of the financial budget.”
Whereas, committee member Hussein Moanis confirmed in a statement to (Al-Mada) that “the committee worked under great pressure because of the needs of the street and the demands of the Iraqi segments.”
Moanes continued, "The committee did everything it could to include what could be included in the draft budget."
He pointed out, "Parliament has made real efforts by including important paragraphs for the Iraqi people, and the paragraphs that we did not succeed in adding in this budget, we will include them in the next budgets."
On a related note, the First Vice-Chairman of the Parliamentary Integrity Committee, Alia Nassif, said in a statement to (Al-Mada), that “there is a direct directive from the presidency of the committee to follow up on the implementation and spending of the country’s general budget to avoid wasting it.”
Nassif indicated, "These procedures came to follow up on their work, to support transparency, and to block the way for the corrupt, according to the applicable standards."
In turn, a member of the House of Representatives for Diwaniyah Governorate, Representative Faisal Ihsan Al-Naeli, told (Al-Mada) that “there are 27 thousand job degrees that have been added to the annexes of Diwaniyah, Basra and Anbar, especially those who are continuing official work and those with administrative appointment orders.”
Al-Naeli confirmed, "The number of annexes in Diwaniyah is 13,000, Basra has 10,000, and Anbar has 7,000."
He pointed out, "There are 150,000 job degrees that will be distributed to the governorates, according to need and according to population density." LINK