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"The biggest deficit" threatens the salaries of employees in Iraq ... How can the crisis be faced?
February 18, 2020
An economist warned of an economic crisis that could turn into a "war" (Ultra Iraq)
Ultra Iraq - Editorial Team
Iraq is awaiting a fiscal deficit that is the "largest" in its expected budget for the current year. Its impact may reach employee salaries, especially with the launch of a campaign of "random" appointments by Adel Abdul Mahdi's resigned government against the background of protests taking place in the country, in light of expected global economic risks that may deepen the crisis.
The Finance Committee in Parliament expected a deficit is the "largest" in the budget of 2020, about 50 trillion dinars
Although oil prices have improved, the House Finance Committee expects a [You must be registered and logged in to see this link.] in the budget, which has not yet seen the light due to the events in the country that led to the resignation of the government.
And the former oil minister, Ibrahim Bahr Al-Ulum, expected the drop in world oil prices to range between 53 - 54 dollars a barrel, which pushes (OPEC) to reduce its production, which means that Iraq will bear a part of the production cut plan.
Bahr al-Ulum attributed in [You must be registered and logged in to see this link.] , the expected decline for two reasons, the first related to the contraction of economic growth in China as a result of the Corona virus, which is a temporary situation that will soon be overcome, and the second is the increase in oil production for the United States, explaining that this "will have (OPEC) countries during their meeting Next month to adopt a plan to reduce production again and more than it is now. " For his part, [You must be registered and logged in to see this link.] a member of the Finance Committee MP nostalgia Qaddo, that " the employees ' salaries will be affected by deficit in the budget of 2020, noting that" there are important to the caretaker government 's obligations and the House of Representatives to the Iraqi people, including those related to the financial unemployed scholarships for the students and the appointment of graduates and install contracts, but These obligations were not implemented due to the absence of financial allocations. "
He added, "All the decisions that were issued were not based on a real study of the financial reality in the country, as the budget is still with the government, which hampered the implementation of many projects," noting that "the expected deficit in the budget of 2020, amounting to about 50 trillion Dinars, including a deficit of about 10 trillion dinars in employee salaries. "
The prime minister’s financial advisor ruled out that the deficit would affect the salaries of employees and retirees
To that, the Prime Minister’s advisor for financial affairs, Mazhar Muhammad Salih, stressed the need to “restore financial engineering for Iraq to reduce unnecessary expenditures, and to find real and effective internal sources to supplement the budget with revenues before resorting to borrowing, especially since the state is in a balanced debt position at the present time, i.e. Financial space is good. "
Saleh [You must be registered and logged in to see this link.] in [You must be registered and logged in to see this link.] , "The existence of tax evasion, as paying the tax and fees enhances the state budget, and thus it will go to the community’s livelihood, especially since the employee is an important contributor to the economic cycle through spending it, and this process is called doubling the income in a way that drives the wheel of the economy." ".
Saleh ruled out that the financial deficit affects the salaries of employees and retirees, noting that "the government tends to provide internal sources of revenue."
The economic expert, Talal Abu-Ghazaleh, warned of a near global crisis, while urging Arab countries to benefit from it through 4 industrial sectors.
Abu Ghazaleh called, in televised statements, the officials to "form work teams in order to study the crisis that will turn into war, and study the opportunities available to exploit them and turn them into gains", stressing that "4 economic sectors will never be affected even in crises and wars, namely: the food and drug industries." Education and IT tools. "
An economist warned of a global economic crisis that could turn into a war, calling on Arab countries to invest in 4 industrial sectors
The expert's idea revolves around consolidating industries that launch products that are alternative to their counterparts in China, which Abu-Ghazaleh believes will be a party in the coming crisis, which will turn into war, which will push the world to search for alternatives to Chinese products, after the crisis of "Corona".