Where is the Iraqi people's budget for 2022

Samir Al-Nusairi

23/03/2022

Samir Al-Nusairi*

We are now in the middle of the third month of 2022 and most countries of the world have issued their general budget for the aforementioned year, with the exception of Iraq, which we, the economic elites, did not know where the general budget is. Was it prepared? Is it still in the corridors of the ministries of finance and planning? In preparing them on the items as usual, or did they adopt economic programs and plans? In fact, no one knows and we only know that Iraq’s budget for several years is not approved and issued until several months after the budget year because of the problems and political quarrels between the political blocs and those who forgot that the budget is the budget of the Iraqi people and the budget for the implementation of investment projects and projects of reconstruction, construction and economic reform. How long will the patient people suffer this injustice and the encroachment on their rights in this repeated way every year?

The current and expected financial situation for Iraq until the end of the year is very good, as oil prices will not be less than $100 per barrel. It fulfills its obligations towards internal and external debts, establishes its sovereign fund, 

and overcomes a real budget deficit for the first time in years. Therefore, in the face of this reality requires taking quick measures by approving the budget by the new government and Parliament, with a date not exceeding the first half of this year, and to include the following priorities: ‐

1‐ Re Revenue structure towards activating and stimulating the productive sectors, especially agriculture, industry, housing, services and tourism, and increasing the proportion of the contribution of income sources other than oil to the budget revenues.

2 - Increasing the investment allocations in the budget, including at least the completion of projects whose implementation rate exceeded 50%.

3- Giving a role to the private sector in investing in reconstruction and infrastructure projects in Baghdad and the governorates

4- Allocating an amount to establish the Sovereign Fund (the Generation Fund) from the savings achieved from the increase in oil prices, and it is managed by a specialized board of directors, and its funds are invested under the supervision of the Central Bank and the supervision of the Financial Supervision Bureau.

5- Allocating a special amount to the Ministry of Commerce to secure strategic storage for foodstuffs covered by the ration card for a period of no less than 3 months.

Increasing the ration items to reach 10 items. Allocating funds to support the prices of flour, rice, sugar and baby milk.

6- Allocating an amount to activate and support the agricultural, industrial and tourism sectors and to support the local product.

7- Allocating an amount to the Ministry of Labor to cover the increase in the number of people covered by social care, to cover the increase in their salaries at a rate equivalent to the reduction in the Iraqi dinar exchange rate, to cover the financing of small and medium projects, and to include the displaced who cannot be returned to their homes 

with social care.

* Economic and banking consultant

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