Warning of the upcoming financial crisis in Iraq

by **Rocky** Thu 19 Sep 2019, 2:09 am

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Warning of the upcoming financial crisis in Iraq

by Rocky Thu 19 Sep 2019, 2:09 am

[size=36]Warning of the upcoming financial crisis in Iraq[/size]

Political | 09:03 - 19/09/2019

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BAGHDAD -
Pessimism overwhelms the atmosphere in the Iraqi parliament over the budget for next year 2020, which began members of the committees of financial, legal and economic affairs with a wide review with the government, in preparation for formal receipt by the parliament during the next two months at the latest with a view to vote.
This comes amid the pessimism of economists and parliamentarians in light of expectations of increasing the deficit this year and warnings of the worsening of the financial crisis next year.
After reports of a large government lavishness and openness to employment and unimportant projects, which threaten a huge fiscal deficit will be the first of its kind in the country since 2003, MPs assured the "New Arab" that there is a decline in the country's oil and non-oil financial revenues General warns of a severe financial crisis will hit Iraq and must work on a comprehensive review of the spending plan in the country.
A member of the Finance Committee in the Iraqi parliament, Anaam Al-Khuzai, revealed in a statement, on Monday, "a sharp decline in revenues of the state oil and non-oil", warning of the possibility of "a severe economic crisis, in the country, contrary to what is stated in the government program The fourth axis focused on maximizing non-oil revenues and monitoring public debt to ensure that it remains within the limits of financial sustainability, "the statement said.
And it caused a drop in oil revenues and customs agreements last with Iran in the incurrence of the current general budget heavy losses, especially with the granting of this state customs exemptions and the abolition of features entry fees are led to non - oil revenues decline significantly. "
She continued , " the official figures point to a decline in non - oil revenues from 8.6 trillion dinars in August of 2018 to about 3 trillion dinars in August of 2019 (one trillion Iraqi dinars = $ 800 million).
On the problem, Faleh al-Khazali, a member of the Iraqi parliament for the "conquest", which supports the Prime Minister Adel Abdul-Mahdi, said that this year Iraq accounted for oil from the total financial imports of the vast majority, so the government in general needs a revolution to revive several sectors and reduce imports and achieve sufficient in Several areas otherwise the crisis will fall.
"Encouraging investment, revitalizing the industrial sector, reviving agriculture, reducing spending on unimportant areas and fighting corruption in real terms is what the state urgently needs this year," he said.
He continued: so far the government program has been implemented only about 40 per cent, and meetings are continuing with the government and discuss with it the budget 2020 to strengthen it.
MP Ala Talabani said that "the discussion of the new budget focuses on the importance of finding alternatives other than oil, the current figures confirm that 96 percent of Iraq's annual imports come through oil only, and with crises and problems in the region, dependence on oil alone is not correct."
The Talabani told the "new Arab", that the failure of the government to obtain non-oil revenues is a decline and backwardness in the government program and bear the responsibility alone. The
Iraqi Ministry of Finance, in turn, said that the figures that are being circulated about the budget deficit next year due to declining revenues are incorrect. And premature.
A statement from the ministry that "the Ministry of Finance has been holding since the beginning of this year more than sixteen meetings to discuss the strategy of preparing the budget for the coming years and in the presence of the Finance Committee in the Iraqi Council of Representatives and representatives of all ministries, bodies and provinces.
" in previous budget , premature and unfounded. "
He predicted deputies deficit rose to $ 30 billion next year, compared to $ 23.3 billion this year.
observers Iraqis considered that the deputies in parliament , reports remain approximate figures and Ministry of Finance alone should explain much of the Qaiq about the reason for decline in imports of financial Iraq.
According to Iraqi economist Moneim al-Dulaimi, the new government has created tens of thousands of jobs and launched large projects and allocations in addition to the repayment date of many of the loans taken by Baghdad from several banks and countries during the war on ISIS in the past years.
Al-Dulaimi told Al-Arabi Al-Jadeed that the government canceled visa fees for more than 5 million Iranians who enter the country annually and pay each visitor $ 40, in addition to signing agreements with Jordan, Turkey and Iran on customs duties with fluctuating oil prices and failure The promise of self-sufficiency in gas, which allowed the continuation of purchases from Iran, all factors and indications that the next year will be difficult.He
noted that starting the discussion of the budget from now is further evidence that officials understand the critical problem and need discussions and remedies.

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