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Finance Minister Ali Abdul Amir Allawi "Internet"
Economy News - Baghdad
The Minister of Finance, Ali Abdul-Amir Allawi, said that Iraq's revenues from the beginning of this month until the end of the year do not exceed 15 trillion dinars, explaining that the Ministry of Finance will implement, from next year, income tax on employee salaries allocations.
Allawi added, in an interview with the Euphrates channel, which was seen by "Al-Eqtisad News", that the ruling expenditures, which are represented by retirement and foreign debt benefits that reach 50 billion dollars, and social security, oil revenues are not sufficient to meet these monthly requirements, indicating that the Ministry of Finance is looking for A way to increase non-oil revenue to finance salaries.
He stressed that without cooperation between the Ministry of Finance and the Central Bank, this crisis cannot be avoided, and therefore any rupture between the two parties will harm the economy, explaining that the Iraqi reserve of foreign currency is estimated at between $ 53-55 billion, and an investor is among deposits in US bonds.
He added that the white paper includes a vision of moving the Iraqi economy to the post-oil era and gives an opportunity to advance the economy, and address all the obstacles and distortions in the economic map, stressing that the reform paper clarifies the economic dilemma and the solutions put forward to treat this dilemma.
And that the World Bank confirmed that Iraq is on the verge of an economic disaster, and the situation is dangerous and approved by the most important international party, explaining that the salaries of employees and retirees accounted for 20% of oil revenues, while today they constitute more than 120% of oil revenues, stressing that the salaries of retirees amount to 1.2 One trillion dinars per month.
He pointed out that the productivity of the Iraqi employee is the lowest in the world, indicating that the reform paper may be implemented within a period of 10 years, and anyone who has a realistic vision for managing the economy must present it.
He explained that the previous government opened the doors to employment in an ill-considered and unrealistic manner, and its repercussions occurred on this government, stressing that it is not permissible to employ any person under the scale of salaries and allocations.
He stressed that the 2021 budget will be submitted to the Council of Ministers during the month of November, and will include rationalization of the electricity and oil sector, and the expansion of the network of direct taxes on employee salaries, because salary allocations sometimes reach five times the salary.
He noted that the ration card allocations amount to 5 trillion dinars, which is part of the ruling expenses and not to prejudice them.
On the relationship between Baghdad and Erbil, Allawi said that the region's benefits represent 12% of the general budget, and oil exports must be under Baghdad's control.
He added that the agreement between Baghdad and Erbil now is to give the region its oil and revenues from the border crossings to Baghdad, but the region has not yet provided and has reasons, explaining that Kurdistan grants oil companies 25% of the extracted oil revenues, due to participation contracts and not service contracts.
He stressed that Baghdad did not grant the region funds in the sixth and seventh months of this year, because he did not send oil to Baghdad, stressing that the closure of the US embassy in Iraq will have economic repercussions on Iraq.
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