Oil "disturbs" Iraq's 2021 budget: an expected update of the "dinar exchange rate" and amending the figures to "reduce the financial deficit!"

by **claud39** on Sun Dec 06, 2020 9:44 pm

[size=30]Oil "disturbs" Iraq's 2021 budget: an expected update of the "dinar exchange rate" and amending the figures to "reduce the financial deficit!"[/size]

2020-12-06

Oil "disturbs" Iraq's 2021 budget: an expected update of the "dinar exchange rate" and amending the figures to "reduce the financial deficit!" 640-1

Yes Iraq - Baghdad

Today, Sunday, the Parliamentary Finance Committee informed the Presidency of the Council of Representatives that it will hold continuous meetings as soon as the General Budget Law arrives in Parliament for discussion and approval as soon as possible. It is likely that the 2021 budget will be approved at the end of this December.

"The government has postponed sending the budget to the House of Representatives so far due to the high oil prices in the global market, which requires reformulating numbers in the budget sections to reduce the financial deficit ceiling and increase revenues," the committee's reporter, Ahmad Al-Saffar, said.

He explained that "the cabinet will meet next Tuesday and may approve the budget then or hold a special session to discuss and approve the budget next Wednesday, which means that the budget will reach the Presidency of Parliament early next week."

He added, "The draft budget is still up to now with the General Secretariat of the Council of Ministers to audit it in coordination with a special committee from the Ministry of Finance and the International Monetary Fund to update the exchange rate of the Iraqi dinar before the end of the fiscal year," indicating that, "according to government estimates that we have informed about the price of a barrel of oil In the general budget it will be between 42 - 43 dollars.

The spokesman for the Council of Ministers, Minister of Culture, Hassan Nazim, announced last week that the Council of Ministers decided to postpone its session devoted to discussing the draft Federal Budget Law 2021, until yesterday, Saturday, as it has not yet been held.

Expectations of the next deficit?

And on that, today, Sunday, the Foundation for Studies, the Iraqi government’s monthly expenditures exceeded the 6 trillion dinars barrier for last October, surpassing the general average for the year of 5.7 trillion Iraqi dinars.

The Future Iraq Foundation for Economic Studies and Consultations said in a statement that operating expenses for salaries rose to reach 3.45 trillion dinars, surpassing the general salary average of 3.34, an increase of 3.45%.

The statement pointed out that the expenses of social care increased by 19% compared with the annual general rate to reach 1.5 trillion dinars, indicating that "the total expenditures of the Iraqi government have increased by 5.85% from the annual rate to reach 6.12 trillion dinars," noting that "the general rate was 5.7 trillion dinars.

The statement added that “at the level of imports, imports achieved an increase of 8% compared to the general rate of imports, and despite the decrease in oil revenues by 10% from the general rate, a significant increase of 175% in non-oil revenues, as non-oil revenues amounted to 1.186 trillion dinars. Higher than the general average of 431 billion dinars, and thus the total revenues for the month of October (last) would be 4.652 trillion dinars.

He pointed out that "despite the increase in revenues, the government recorded a real deficit of 1.5 trillion dinars, and thus the total cumulative deficit of the Iraqi state for the year 2020 has reached 15 trillion dinars."

The institution expected; That "the deficit until the end of the year exceeds more than 29 trillion dinars as a result of the need for the government to pay debts dues at the end of the year in addition to the payments of oil licensing companies, which are expected to be worth more than 13 trillion dinars," according to the statement.

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