[You must be registered and logged in to see this link.]
The Iraqi parliament voted at the end of last May on the new Financial Management Act 2019, and despite the time spent by the Finance Committee in revising and amending this law, the legislator law has many weaknesses and conflicts with the government program of the government of Adel Abdul Mahdi.
Here we do not want to delve into the weaknesses of the new law in the hope of discussing this in another article, but we focus on the negligence of the Financial Management Act 2019 legislator of a new law on public debt. It was hoped that the law would include provisions and provisions governing public debt levels and mechanisms to extinguish the accumulated debt in order to achieve financial sustainability in the country.
Due to the repeated borrowing from the accumulation of public debt rates steadily, leaving the premiums and benefits became exhausting the federal budget, as the payments of public debt (internal and external) the duty to repay more than (10) trillion dinars, as stated in Article (2) Of the federal budget law for this year, a difficult figure will inevitably be at the expense of the efforts of construction and reconstruction and economic development in Iraq. Currently, total public debt exceeds $ 130 billion ($ 41 billion in outstanding debt) and nearly $ 65 billion in external debt, and the remaining $ 36 billion in domestic debt estimated to reach 2018.
Article 52 of the new law provided for the repeal of the Financial Management and Public Debt Law issued under CPA Order No. 95 of 2004, with the exception of Appendix B of the Public Debt Law. Which means the continuation of the previous and effective public debt law.
Here are several observations:
1. The Finance Management Act (94) of 2004 gives the Minister of Finance considerable powers in public borrowing.
2. The law does not refer to the maximum ratios of public debt. The new financial management law also mentioned the maximum deficit ratio of 3% of GDP.
3 - Most of the details contained in the law are technical and have no economic or financial dimensions.
4 - There is no reference to external debt and mechanisms to deal with.
5. There is no reference to government debt from international institutions and mechanisms to deal with them (IMF and World Bank).
6 - There is no reference to the debts of the provinces and regions and the mechanism of payment, which is a problem between the Center and the region.
7. The law does not refer to the accumulated debt and the mechanisms for dealing with it, nor does it include a fund to pay the public debt.
In light of these observations, and many other technical details, a number of factors oblige the House of Representatives to accelerate the enactment of a new law to manage the public debt, perhaps the most important:
1. The fragile financial situation and the accumulated debts necessitate a review of the structure and content of the effective debt management law to ensure financial sustainability.
2 - There is no justification for the adoption of a new law of financial management devoid of the law of public debt, although the latter part of the first.
3 - The text of the fourth axis / first / paragraph (9) in the government program of Mr. Adel Abdul Mahdi (2018-2022) on the control of internal and external debt. This paragraph is one of the most important paragraphs of the axis of strengthening the economy because of its repercussions on the economic and financial situation in Iraq in the medium and long term, and stipulated: ((control of internal and external debt and prevent exceeding certain levels, and linking the internal debt and external investment projects and generated values and wealth and non-use For the consumer or operational purposes of the budget), while the new Financial Management Law did not include any reference to the achievement of the said objective from near or far.
4. Article 20, paragraph 2, of the new Financial Management Act refers to the deposit of the financial surplus realized in a sovereign fund, which necessitates the establishment of a sovereign fund whose branch may be allocated to pay the accumulated public debt.
[You must be registered and logged in to see this link.]
Today at 6:28 am by Rocky
» Despite setting the first session... the talks to form the regional government are at a standstill a
Today at 6:27 am by Rocky
» Speaker of the House of Representatives discusses a number of important national issues with the Pre
Today at 6:25 am by Rocky
» Iraqi oil falls again on third day of trading
Today at 6:24 am by Rocky
» Economist: Iraq has a reliable database and the census does not create development but rather facili
Today at 6:21 am by Rocky
» Decisive moves to propose salary scale amendment under the parliament dome
Today at 6:20 am by Rocky
» To solve the overcrowding crisis, Iraq needs to build 10,000 schools
Today at 6:19 am by Rocky
» 64% of Anbar power plant in Hit completed: A qualitative step to enhance energy
Today at 6:18 am by Rocky
» Minister of Interior: We discussed with the United Kingdom ways of security and intelligence coopera
Today at 6:17 am by Rocky
» The possibility of an Israeli strike on Iraq is increasing.. Will the factions stop the attacks if a
Today at 6:16 am by Rocky
» Halt of Iranian gas supplies threatens operation of power plants in Iraq
Today at 6:15 am by Rocky
» The Presidency of the Region announces: The new parliament will hold its first session on the second
Today at 6:14 am by Rocky
» America: Factions in Iraq expose the country to the risk of instability
Today at 6:12 am by Rocky
» Planning reveals the next step of the census: We will visit these families
Today at 6:11 am by Rocky
» Health: Opening of three new factories to produce various medicines
Today at 6:10 am by Rocky
» Health: Ongoing work to develop and create new specialized centers throughout Iraq
Today at 6:09 am by Rocky
» The House of Representatives completes the first reading of the draft law amending the first three-y
Today at 6:07 am by Rocky
» President of the Republic: The necessity of unifying efforts to establish peace and stability in the
Today at 6:06 am by Rocky
» Al-Mandlawi to Kuwaiti Ambassador: The security of the region is indivisible
Today at 6:05 am by Rocky
» Indian Oil Corporation maintains deal to import Iraqi oil
Today at 6:04 am by Rocky
» Iraq's oil exports exceed 103 million barrels last month
Today at 6:03 am by Rocky
» MP angry over obstruction of defense minister’s interrogation: Files threaten Iraq’s security collap
Today at 6:00 am by Rocky
» Cabinet decisions include those related to “voluntary deduction” and Iraqi airports
Today at 5:58 am by Rocky
» For the first time since 2003, non-oil revenues achieve significant growth during 2024 (tables)
Today at 5:56 am by Rocky
» Find out the dollar prices in the Iraqi markets
Today at 5:55 am by Rocky
» A new suspicion in the railways, its heroes are the “22 billion contract team”.. Signing a contract
Today at 5:54 am by Rocky
» Prime Minister sponsors signing of two memoranda of understanding in the field of tourism
Today at 5:52 am by Rocky
» utube 11/23/24 MM&C Reporting-Expectations are High-IMF-Flexible Exchange Rate Regime-Pr
Yesterday at 8:45 am by Rocky
» Parliamentary Finance Committee discusses amending the three-year budget
Yesterday at 8:40 am by Rocky
» utube 11/26/24 MM&C MM&C Iraq News-Central Bank Iraq-Monetary Stability Excellent-Budget Law 2023,
Yesterday at 7:19 am by Rocky
» "Rich Iraq" seeks "money" to combat methane emissions: internal and external obstacles
Yesterday at 7:13 am by Rocky
» Increase in foreign remittance sales at the Central Bank of Iraq auction
Yesterday at 7:12 am by Rocky
» Its area is 2.5 million acres, and these are its details.. Work begins on a "large" residential city
Yesterday at 7:09 am by Rocky
» Kurdistan Finance delivers employees' salary schedule to the federal government
Yesterday at 7:08 am by Rocky
» Beggars are sweeping the streets of Iraq.. Their numbers are "large" and 90% of them receive welfare
Yesterday at 7:07 am by Rocky
» Settling tax trust claims
Yesterday at 7:05 am by Rocky
» Launching the National School Health Strategy
Yesterday at 7:04 am by Rocky
» Approval to implement service projects in Babylon
Yesterday at 7:02 am by Rocky
» New container handling berths at ports
Yesterday at 7:02 am by Rocky
» Work: Demand for registration in social security
Yesterday at 7:01 am by Rocky
» Reconstruction: Land Bank to be completed next year
Yesterday at 6:59 am by Rocky
» Aiming to enhance services in schools and prevent diseases, the National School Health Strategy for
Yesterday at 6:58 am by Rocky
» Karmian Festival witnesses the conclusion of commercial and industrial contracts
Yesterday at 6:57 am by Rocky
» Focus on the banking sector
Yesterday at 6:56 am by Rocky
» Minister of Trade: Studies Center is a turning point that serves the Iraqi economy
Yesterday at 6:55 am by Rocky
» Economists: Census is a roadmap for development
Yesterday at 6:54 am by Rocky
» Today's newspapers are interested in Al-Sudani's announcement that the population of Iraq exceeds 45
Yesterday at 6:53 am by Rocky
» International Development Bank: Today's incident was an extortion attempt that did not affect our wo
Yesterday at 6:48 am by Rocky
» thirty-sixth session, chaired by the Minister of Planning
Yesterday at 6:47 am by Rocky
» Closed meeting of the Parliamentary Finance Committee to discuss seven files
Yesterday at 6:46 am by Rocky
» The demographic boom in Iraq: an economic opportunity or a social burden?
Yesterday at 6:44 am by Rocky
» Al-Sudani confirms to Russian delegation Iraq's desire to establish a mechanism that brings mutual b
Yesterday at 6:42 am by Rocky
» Parliament holds its session headed by Al-Mashhadani and attended by 168 MPs
Yesterday at 6:41 am by Rocky
» The Iraqi government deducts 1% of the salaries of employees and retirees to donate to Gaza and Leba
Yesterday at 6:38 am by Rocky
» Iran announces its commitment to continuing gas exports to Iraq
Yesterday at 6:37 am by Rocky
» Iraq, Russia discuss energy cooperation
Yesterday at 6:36 am by Rocky
» British Home Secretary to visit Iraq tomorrow
Yesterday at 6:35 am by Rocky
» The next parliament will have 450 members.. Officially, Al-Sudani announces that the population of I
Yesterday at 6:33 am by Rocky
» US Ambassador Warns of 'Frightening Actions': Iraq Does Not Want to Be Drawn into Regional Conflict
Yesterday at 6:32 am by Rocky
» Planning: The announced census results are not preliminary and the number will increase
Yesterday at 6:30 am by Rocky
» Election “hype” begins early.. Al-Maliki insists on holding it and Al-Sudani prepares
Yesterday at 6:29 am by Rocky
» “No more delays”.. Parliament changes the mechanism of holding sessions: “Controversial” laws are re
Yesterday at 6:28 am by Rocky
» Al-Mashhadani to the heads of the blocs: I prefer to vote on the general amnesty law before anything
Yesterday at 6:27 am by Rocky
» Iraq ranks 8th in the Arab world in achieving work-life balance in 2025
Yesterday at 6:26 am by Rocky
» Labor announces issuance of more than a quarter of a million national cards for social protection be
Yesterday at 6:24 am by Rocky
» Iraqi-Chinese research on accelerating combined cycle power projects
Yesterday at 6:23 am by Rocky
» Al-Maliki praises the decision of the International Criminal Court and demands the resolution of the
Yesterday at 6:22 am by Rocky
» Al-Mashhadani calls for voting on the general amnesty law for the “oppressed” before other laws
Yesterday at 6:21 am by Rocky
» Yazan Mishaan Al-Habouri revolts against his "leak": There are those who obstruct the government's e
Yesterday at 6:19 am by Rocky
» US Ambassador: Ending the presence of the international coalition in Iraq is being implemented and w
Yesterday at 6:18 am by Rocky
» Al-Mashhadani directs to raise the suspended laws to the Presidency of the House of Representatives
Yesterday at 6:17 am by Rocky
» "His general situation is unbearable" .. Parliamentarian: Political consensus to keep Iraq away from
Yesterday at 6:16 am by Rocky
» Al-Sudani agrees to launch the “For Her” initiative to support Iraqi women
Yesterday at 6:15 am by Rocky
» Development Bank condemns extortion attempts: It will not affect our workflow
Yesterday at 6:13 am by Rocky
» Iraq-China oil-for-reconstruction deal faltering: A geopolitical shift in the Middle East
Yesterday at 6:12 am by Rocky
» Planning reveals the next step of the census: We will visit these families
Yesterday at 6:10 am by Rocky
» Parliamentary Finance Committee calls on the government to expedite sending the budget tables
Yesterday at 6:09 am by Rocky
» OPEC+ may extend oil cuts at its meeting next Sunday
Yesterday at 6:06 am by Rocky
» Parliamentary Integrity Committee discusses with the Director of Central Oil the file of contracts a
Yesterday at 6:04 am by Rocky
» Government notice regarding the legal status of foreign workers
Yesterday at 6:02 am by Rocky
» House of Representatives holds "important" session today.. Expectations of extending the legislative
Yesterday at 6:00 am by Rocky
» Slight rise in dollar prices against the dinar in Iraqi stock exchanges
Yesterday at 5:59 am by Rocky
» Baghdad "softens" and Kurdistan oil prepares to continue its global journey
Yesterday at 5:58 am by Rocky
» "For 5 million dinars or in installments" .. Iraqi electric cars soon on the streets
Yesterday at 5:57 am by Rocky
» Where did the Intelligence Bill get to in the House of Representatives?
Yesterday at 5:55 am by Rocky
» "Contract Suspicions Series"... What are the loopholes in the Korean air defense system contract in
Yesterday at 5:54 am by Rocky
» MP reveals latest developments in the formation of the new Kurdistan government
Yesterday at 5:51 am by Rocky
» Personal status: imposing a vision or turning Iraq into a copy similar to the Iranian religious regi
Yesterday at 5:50 am by Rocky
» Oral question to the governor.. Parliamentary movement regarding the “Basra, the Economic Capital of
Yesterday at 5:48 am by Rocky
» MM&C 11/25/24 Parliamentarian: We need to extend the legislative chapter to 8 sessions and the bud
Mon Nov 25, 2024 12:04 pm by Rocky
» Al-Alaq: The monetary situation in Iraq is excellent and our reserves support the stability of the e
Mon Nov 25, 2024 10:29 am by Rocky
» utube 11/25/24 MM&C MM&C Iraq News-CBI Building Final Touches-Oil Exports-Development Road-Turkey-B
Mon Nov 25, 2024 8:33 am by Rocky
» Parliamentary movement to include the salary scale in the next session
Mon Nov 25, 2024 7:11 am by Rocky
» Parliamentary Finance Committee reveals the budget paragraphs included in the amendment
Mon Nov 25, 2024 7:10 am by Rocky
» Al-Maliki calls on the Bar Association to hold accountable members who violate professional conduct
Mon Nov 25, 2024 7:08 am by Rocky
» Politician: The security agreement with America has many aspects
Mon Nov 25, 2024 7:07 am by Rocky
» Kurdistan Planning: More than 6 million people live in the region, the oldest of them is 126 years o
Mon Nov 25, 2024 7:05 am by Rocky
» Al-Alaq: Arab consensus on the role of central bank programs in addressing challenges
Mon Nov 25, 2024 7:03 am by Rocky
» Economics saves from political drowning
Mon Nov 25, 2024 7:02 am by Rocky